Uh Oh, Where Are The Customers???

One lone attendant, no cars in sight. Not good.


















Remember the days when people were freaking
out that gas was going to pass the $3 mark? Now
we're happy when it's below $4.


So my city had been growing rapidly due to the hot housing market. Many folks moved out to Manteca in an effort to buy a home at a decent price. I did so in 2003, right before the home prices skyrocketted to ridiculous levels. In fact, the Tracy-Manteca-Stockton area has been a popular choice for folks looking to avoid the insane Bay Area home prices. Since 2005, I've seen the city attract businesses such as Kohl's, Chili's, Old Navy, Circuit City, and Ross. More recently, a Costco (complete with gas station) has opened up. In another part of town, a Bass Pro Shop is almost complete and retailers such as Best Buy, JC Penney, and a 16 theater Cineplex will be opening soon...but will the town be able to support these businesses?

At the beginning 2005, a 2000 square foot home could be bought at a price of around $520k. Unreal, I know, especially for such a "boondock" location (Hey, nothing wrong with small towns, but c'mon, this ain't San Francisco). Forward a couple of years later after the mortgage melt down and the same house (bank owned because of a foreclosure) can sell for $244k.

Wow.

Great for folks looking for an opportunity to buy their first house, bad for the suckers who vastly overpaid for their properties in an attempt to avoid "missing the boat."

Take a ride through my neck of the woods and be prepared to see scores of "For Sale" signs and abandoned homes. What must the retailers who are already building in the city be thinking?

Is it too late to renegotiate my lease???

Costco is generally buzzing with customers, especially the gas station which typically has lower prices. I'm sorry to say that the last couple of times I've filled up on my way to work (at least a half hour after the gas station opens) it has been virtually empty. Yikes. How long until these retailers pack up and leave? At least many of these large businesses can afford to gamble on their business choices, but what about the regular folks who gambled on buying their homes hoping for a piece of the American dream? Folks who spent their life savings on a down payment, folks who felt safe securing the risky loan on the notion (and often times false promise) that they could always refinance when their home went up in value?

Good thing we rely on the Good Lord above for our strength and hope, and not on the economy, the housing market, or our politicians.