[quote]Digital Chainsaw wrote:
Suggesting that the housing bubble only affects speculators is like suggesting that the tech bubble only affected day traders. Shrewd speculators aren’t affected by bubbles because they’re long gone once the air starts coming out. Your average joe is left holding the bag. It’s the average person who felt the need to chase this market up that will be punished, the person who paid too dearly, overextended himself, and is upside down and facing an ARM that’s going to readjust in the near future. \
Those are the people who are in trouble. The market is what it is, but if you’re trying to unload your house, then it IS shitty and it’ll likely get worse.
Nice Post!! I totally agree.
Me, too. It isn’t so much a housing bubble (once thought impossible by speculators) as it is a credit bubble.
Like jjblaze wrote, the problem has been mortgage brokers shoehorning buyers into houses they really couldn’t afford for the last several years, based on an extremely low Prime, and thus ARM rates at the time.
Luckily, my wife and I bought our home in March 2000 when the market was still relatively stable. It was recently appraised for triple our original purchase price which sucks for us because we have no plans to sell and our property taxes have skyrocketed.
Hell, even if we did want to sell, I doubt we could find a buyer at this artificially inflated market price, and everything else in our area has gone up accordingly.
Hopefully, this drop in prices will allow the average, working American to buy a house again. If my wife and I were to try and buy the house we live in at today’s market price, we could never afford it.[/quote]
Hate to disagree but the prices( generally) arent artificially inflated. Interest rates are low, and population pressure, and other factors. (i.e. the section8 program here in phila) put real pressure on the market. real estate prices may settle, but generally they are what they are.
You though are a winner. Why not sell your house and roll your increased value into a better property. If you are smart you should be able to find a neighborhood that will fit your need. This will also set you up well for the next cycle, when prices increase again, you’ll have increased value again.