While even these "star" markets will be working their way through a period of price adjustments or a lengthier listing period at least their core fundamentals are sound.Those home owners who are unable to pay their upwards adjusted mortgage payments and who have not been able to re-negotiate their loan terms with their Note holders will assuredly become "tomorrow's renters".It's already started in many areas... rental availabilities are rapidly shrinking = a strong potential for investors willing to build SFRS for rental or for "sale" under Lease with Option to Purchase contracts, 2-4 unit multi-family and new apartment complexes.In Myrtle Beach and parts of Charleston (SC) developers of recently completed condos are now replacing unresponded to FOR SALE signs with "Lease with Option to Buy" signs and are now actually seeing evidence that strategy is WORKING.Savvy real estate investors are targeting "spec" builders with unsold inventory that has become a "money drain" in terms of interest carry and are buying SFRs for 10% - 20% below actual cost to complete.

It's difficult to gauge the competing pressures.On the one hand we have the negatives listed above, the foreclosures, the empty houses, the barriers to entry for 1st-time homeowners, and the shrinking mortgage market.On the other side, we have the booming economy, the big projects on the strip, population growth, decreasing supply of land, and most important, the jobs.

Sometimes called the rust belt or other terms that imply the economy boom times are a distant memory.Note that many of the communities that have shrinking populations still have some great neighborhoods.

We in the mortgage business are already being squeezed in our professions with shrinking spreads and available sources of funds.

This means that the inventory of available homes will still be increasing while the number of people who can actually afford to buy will keep decreasing due to lending procedures getting back to normal and the fact that most people's real income keeps shrinking like it has for the last 20 years.

Dark colors always shrink the sq footage whether, doors, trim, cabs, floors etc. while white or light enlarges space.

While I might be ok with fewer dollars or a shrinking dollar I shudder to think what will happen to a huge part of the lower middle class when the coming devaluation actually happens.

Is the city thriving, surviving, or shrinking?

Still with everyone's help I may be able to live my dream.I own one rental property that pays 1250 in rent and has a small and ever shrinking balance of the original mortgage left.

I know by claiming a higher withholding that I am losing interest and opportunity costs.I earn an average salary for the geographic area I live and work, and I believe the reason I get such a large return is due to my dependents and qualifying for earned income credits.Once my wife begins her teaching career, I know those credits will disappear and my refunds should drastically shrink compared to the large amounts I receive now.