Surge In Home Sales, Bad News?
Why the surge in home sales, is bad news...
At another time this would be welcomed as good news: Buyers are back!
Except that it's clear that this wave is driven by lenders trying to get anything they can get right now for the many thousands of houses they've foreclosed on,
because as bad the housing market looks now, it'll get even worse.
if you happened to buy at the peak of the boom, your house is unlikely, in inflation-adjusted terms...
to get back to the price you paid for it for another decade at best, if ever.
the prevailing wisdom remains that if you hold on to your house for a long time, eventually you'll do fine. Don't count on that.
The consequence for anybody who owns a home is that the reigning turn-of-the-millennium assumption that you could count on your house...
not only maintaining its value but providing a nice cushion that you could cash out for a comfortable retirement is no longer in effect.
The Nattering One muses... truer words could not be spoken, it truly is "different" this time and the chickens have come home to roost.
The upside? A wake up call for many as people will have to learn how to make an honest living, and how to SAVE money and pay less...
rather than living off an inflated housing ATM and spending like cash drunken fools.
At another time this would be welcomed as good news: Buyers are back!
Except that it's clear that this wave is driven by lenders trying to get anything they can get right now for the many thousands of houses they've foreclosed on,
because as bad the housing market looks now, it'll get even worse.
if you happened to buy at the peak of the boom, your house is unlikely, in inflation-adjusted terms...
to get back to the price you paid for it for another decade at best, if ever.
the prevailing wisdom remains that if you hold on to your house for a long time, eventually you'll do fine. Don't count on that.
The consequence for anybody who owns a home is that the reigning turn-of-the-millennium assumption that you could count on your house...
not only maintaining its value but providing a nice cushion that you could cash out for a comfortable retirement is no longer in effect.
The Nattering One muses... truer words could not be spoken, it truly is "different" this time and the chickens have come home to roost.
The upside? A wake up call for many as people will have to learn how to make an honest living, and how to SAVE money and pay less...
rather than living off an inflated housing ATM and spending like cash drunken fools.
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