Developments keep popping up all over?

Are banks and developers paying attention to the economy and the market right now?

I keep seeing new developments coming online. I see articles in the paper. I see lot draws and ground breaking's. I see all this and I wonder who is going to buy all these lots and homes on the market.

There are only so many individuals who can and will afford to buy $400,000-$800,000 homes. The people who were buying them were doing it many times with adjustable interest only loans, and I believe that well has dried up. Why don't developers and the banks that loan the money only bring on new developments that are totally unique or developments that target the lower markets like $200-$325 ,000 homes.

This ain't rocket science! Pardon the grammar but it's part of the pun.

I am not a gloom and doom guy, but I am a contrarian. People keep saying it will pick up in the spring, and I would agree if the inventory of lots, homes and developments would stop. I realize they have slowed, but I didn't say slowed, I said stopped.

In a down economy or recession. People with money will buy lots of foreclosures to rent or flip. Those with cash will be king. People will scale down out of necessity. People will simplify their lives and try to become more efficient. People with lots of money will also buy up undervalued stocks of companies from all those who are liquidating or bailing. The rich get richer as they say- but you can't fault them. Many times they are assisting those in foreclosure or they are saving companies stock prices. It would be a wonderful time to have lots of resources or access to them.

Stop the insanity- if you are a developer diversify. That doesn't mean build 2 stories or ranches instead of 1.5 stories. That means find another niche business for a while until things pick back up.