You keep hearing on the news that the US economy is in bad shape...you hear that the housing market is in the tank. Who's fault is that? OURS
I was reading in the Desert Sun(www.mydesert.com) the other day that 512 homes have been foreclosed on January 2008. Now I do not know the circumstances for each of these homes...be it they had a A.R.M.(Adjustable Rate Mortgage), too high of payments, got sick, lost the job, or what. I see that the problem is that AMATUER investors messed things up. They buy a home for $X, fix it up a little, and try to sell for $Y. By then your house is OVERPRICED at $Z and you cannot dump the house. So you are STUCK with 2 or more house payments. Then they don't want to rent in the event they might sell. In the mean time, your savings is running dry and you lose the investment...The HOUSE FLIPPERS shouldn't have made the investment in the first place.
The other part is, HOMES in AMERICA are ridiculously overpriced due to GREED! As my discussions with LOGIC about home in the Palm Springs area...for instance the Actress Suzanne Sommers & her husband Alan Hamel are selling their mountain side home above PS for $35,000,000. A little chunk of change. My reliable sources told me, that is a ridiculous price and it should be more like $10,000,000 to $15,000,000. That is what I am talking about. I like money, but why are we always trying to rip people off? That is the problem with downtown Palm Springs. The rent in the shops are so high, that they are having trouble staying open. Housing prices are not falling, they are correcting to their real proper level. You want us to move to Palm Springs, drop the prices, so we can afford to buy a home
Greed was the demise of the Roman Empire...Capitalism is a good thing...but lets not have GREED destroy America... Give fair prices...
That is my opinion..What's yours?
David
As you point out, real estate prices have been ballooning in the last few years, and things have reached a point where people have just said "enough is enough - I'm not going to pay inflated prices, either because I can't, or just on principle; if you want me to buy your house, list it at a reasonable market price, and then we can talk."
Don