I bumped into Anne Nolan at a toy store the other day,   Anne is one of those quiet remarkable people who aren’t getting famous for what she does.  Anne is the President of Crossroads Rhode Island,  an organization that provides  comprehensive services and other support 24 hours a day, 7 days a week, to thousands of homeless individuals and families across the state, including crisis intervention, housing options and vocational services to help people re-establish their connection to the community and to move toward productive and rewarding lives. 

I asked her how Crossroads was surviving this economic downturn and she told me there has been a 34% increase in clients of Crossroads between 2008-2009, and that the faces of the guests today are people she has never seen before. I feel both grateful and guilty that I make my living providing home ownership for people while she is working with thousands of people each year, some of who have never and will never have the security of their own home. 

Did you know that 80% of homeless people nationally have a homeless occurrence one time in their lives for 4-5 months?  Once they have stabilized they are never homeless again.  At Crossroads it is 70%.  The majority of homeless guests are employed.  There is a minority of guests (20-30%) who are chronically homeless with multiple issues.  There is a strong correlation between foster children and homeless adults.  They have never had the security of a home and often end up without family support, options and a roof over their heads.

She told me a story that happened last winter.  A woman drove up to Crossroads and stopped in a no parking zone  She asked the guard if she could park for ten minutes.   Overhearing  her plea  Ann  asked the woman if she could help.  The woman, a teacher, was living in her car and  needed to run in to shower before work .  We see these men, women and children every day working jobs all around us and we have no idea that they are living in shelters or in their cars.

We talked about how hard it is for a tenant who is supporting a family thinking that they have security because they are current on their rent while their landlord is in the process of loosing the house to a foreclosure.  One-day woman she was referring to came home from work with her two children and the house was boarded up.  The woman begged the Sheriff to let her get their clothing.  He let her take several suitcases but her furniture and belongings had to stay.  Now they were out on the street. 

It takes people months to save up the first, last and security deposit for an apartment.  Many of these families live at Crossroads until they have saved up the cash to find another apartment. Earning a minimum wage in RI and supporting a family doesn’t allow you to rent an average two-bedroom apartment.  The cost is too high.

We need more affordable housing in Rhode Island.  It is more important today than ever before. Food and shelter are the most fundamental of all needs.

A year ago the State Department sponsored a trip of Haitian Mayors who chose to visit Crossroads Rhode Island.  One of the Mayors summed it up perfectly.  “I don’t understand in a country so wealthy how this has happened.”

If you want to help please visit www.crossroadsri.org

 According to a survey by Realtor.com, 53 % of those who say that they plan on buying a home in the future are not ready to take the leap right now, and most blame that on economic fears.  1/3 of potential homebuyers cited worries about job losses as the main reason, 16% worry about selling their current home, while fewer than 8 % of prospective homebuyers are sitting on the sidelines thinking prices will continue to fall.

The survey also found that among those who do plan on buying soon, some believe that prices aren’t going to fall further and others are looking to take advantage of government incentives. Only one in five potential buyers said they were interested in a foreclosed home, 15 % cited the $8,000 tax credit, and more than 15% said they don’t expect prices will fall further.

With Rhode Island Leading the nation in unemployment, these findings are not unfounded, so there is no telling how long the recovery might take. But with today’s stricter underwriting policies among lenders, and a now more cautious and better informed pool of potential buyers, the end result hopefully will be fewer foreclosures down the road, which will strengthen and stabilize the housing market for years to come.

This Week’s Real Estate Insight:

A few week’s ago someone asked me who will be buying houses in the near future. Optimists, savvy investors, and solid buyers who know they are seeing the best prices coupled with historically low interest rates; these are the people who are buying these days.  There is still a fear of the unknown, so the more your house is ‘done’, the more attractive it is in the market, not many people want to take on a project in this economy, but on the other hand , those who do will find many contractors  are very happy to negotiate.