They say numbers don't lie.
Last Friday, we reported sales of existing houses in Harford County during February were off 32 percent from the same month a year earlier, according to the regional real estate listing service.
Also last week, the county government reported that in the first two months of 2008, it issued less than half the number of permits for new housing units, 56, than it did in the same two months of 2007, 124. Permits to date this year were off 55 percent from the same period in 2007. Worse, permits for just 20 single family homes, the true gauge of the local housing construction market, were issued in January and February this year, compared with 40 during the same two months in 2007 and 78 in 2006.
The regional real estate index also reported recently that of the existing homes that did sell in Harford during February, the average selling price was down more than 25 percent from a year earlier, though it should be noted the price decline locally was not as bad as in the rest of the region.
Our legal ad section keeps expanding. Pages and pages of home foreclosure auction notices. Mostly, but not all, for lower priced properties. More likely to come.
OK, so I know it's only the first two months of the year, but this still doesn't sound too good.
Like most companies, mine killed off traditional retirement plans two years ago and, with the leveraged buyout completed at the end of last year, company contributions to the employees 401k savings plan, maximum 50 percent match up to 6 percent of weekly pay, ended effective Dec. 31. Two months losses in the newsroom appear to be running between 7 and 10 percent among people who have invested over the past seven to eight years — mine was at a minus 7.5 percent going into this week, off 2.5 percent from 10 days earlier.
A big Wall Street investment firm fails because of risky subprime mortgage investments. Government steps in to halt a run — guarantees assets, so rival can buy at bargain price. Anybody ever offer to prop up your bank balance?
OK, so I know it's only the first two months of the year, but is it possible this could get worse?
Friday's paper also reported that one of Main Street Bel Air's most venerable businesses, Lutz Appliances, would be closing soon after 61 years at its current location. Company president Ruth Foard said she didn't want to be forced out of business, so it seemed best to close now while it was still profitable.
Amid much ballyhoo, Crackpot restaurant became the first occupant of a restaurant park planned on Atwood Road between Target and Route 1 when it opened in August 2006. Last month, after months of Internet chatter that the restaurant was in trouble — and denials to the contrary from the owners, Crackpot abruptly closed following Super Bowl weekend. Owners cited a late start, under capitalization and competition from the new Bonefish Grill that opened in Harford Mall late last year. Others said mediocre food and poor service were the problem. Employees claim they didn't get paid; people with gift cards faced the likelihood they wouldn't be honored at full face value.
Also gone from Route 1 is Village Volvo after more than 25 years. The owners lost their franchise because they couldn't sell enough cars at a dealership which once was the highest volume Volvo dealer in Maryland.
A Bel Air businessman with whom several of us are friendly points out his electricity bills have climbed exponentially. Food costs are rising, too. Then, to rub it in, somebody fires three BBs into his large window.
For a variety of reasons, it's tough to be in business today.
Unless you handle foreclosures and liquidation sales — or invest millions recklessly.
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