Welcome to Springfield Illinois, the home of Lincoln and the state capital. Oh yes, surrounded by the richest farmland in the nation three hours south of the socialist incubator mother ship Chicago, is home to one of the most stable and predictable housing markets.
This is a market that usually runs opposite the nation. During the 1990’s when the national market was going gangbusters, and prices were rising, Springfield was mired in a buyer’s market while realizing a 9.9% appreciation rate for the entire decade. Steady Eddie one could say.
Why? Springfield was and is dependent upon government jobs, the number one employer in the county until the medical industry surpassed government in 2011. The same year the local MLS reported the fewest home sales since 1998. Must have been those outrageous 4% interest rates keeping buyers away from the market. Or perhaps it was a lack of jobs? The city, county, and state governments were forced to cut jobs following a collapse in tax revenues.
Due to stellar leadership from Governor Blagojevich, who gave his teary farewell I’m off to meet Bubba speech on Wednesday, spending mushroomed along with budget deficits, union pay and benefits. If not for those nasty people from the hospitals wearing a wire while Blago was shaking them down for donations, we would never have been blessed with Patrick Quinn.
The attack on disposable income commenced. Because of the infinite number of absolutely necessary new unfunded programs, that if cut would cause every red headed twin to the cousin of a foster child not living in a home making $84,000 a year to lose benefits, Quinn had no choice but to raise the income tax on families by 67%. Good bye disposable income.
You know our favorite son and student of Chicago’s famous Alinsky school for deceiving the public, Barack Obama who has no control over gas prices, resulted in the environmentally friendly highest average per gallon gas price in history in 2011, and is on pace to best that record in 2012, further assaults disposable incomes.
Funny thing happened at the grocery store. Seems the rising gas and oil prices resulted in the highest food inflation in twenty years. But not to worry, your government tells you there’s no inflation. Bye, bye disposable income.