LegendKiller

johnnymk

Oh well, it took me years to save enough for a down payment and enough nerve to buy my house 26 years ago.

Owning a home is not an entitlement in America.

Itsme

I don't understand this so-called "housing bust." There is no housing bust. Housing prices in every community have cycled up and down since the beginning of time.

Anyone who doesn't understand that shouldn't buy a house.

LegendKiller

1. "community" doesn't imply a nation wide housing bubble, as there is now.
2. Housing has been sold to people as a no lose riskless proposition, safer and better returning than the stock market.
3. People trust realtors, mortgage brokers, and other industry groups to provide unbiased information. They don't educate themselves enough to realize that these people will never provide unbiased info.

I don't understand why you call it a "so-called Housing bust". Thats like saying "I don't understand this so-called internet bubble".

Chgoman

Real Estate is another area where many people just don't take the time to educate themselves. When the stock market went crazy in the late 90's, people's vision turned green. All they saw was the money and they had no desire to research themselves or even listen if they were told that there are risks and with some companies substantial risks in investing.

When the market crashed and real estate really started to move because of easy lending and the cash people had from no longer throwing everything at the market, off went the real estate market. I find it to be no different now with real estate. Many people just see green and ignore the fact that real estate moves in cycles and the cycles in some areas are much more drastic than others. If you look at historical data for "hot areas", you find that where we are now isn't all that unusual. It happens about every 10-15 years and then is genearlly followed by either a pull back of 15-20% or a leveling off of prices for 6+ years while incomes and assets catch up (somewhat) to prices. The problem is that even if you tell people this (I have) most will ignore you because all they hear is their buddy or co-worker who made 100K in the market in the last 2 years. People only sober up when reality hits.

LegendKiller

I would certainly agree that people need to be more educated.

However, there is a point where not everybody can do that. At that point they rely on educated individuals to provide guidance. These people can be brokers or just industry professionals and they *should* provide good, unbiased advice.

It's tough to see everything on the news about flipping, massive profits, and the go-go nature. With analysts not giving many "sell" ratings and many people relying on them, it can be hard to sift through the BS.

Not to mention all of the mortgage brokers willing to issue no/low-doc mortgages, hybrids, IO, and morgages with LTVs that are completely irrational. The Alt-A world is filled with this crap and people don't know when to turn off the spiget.

The blame doesn't rest solely upon the purchaser.

Itsme

Exactly, well said.

clutchy

houses in San Bernardino county, CA are over valued by 76% according to some sources...

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LK was treated unfairly

thanks X

Daedalus

Wait a minute, this is supposed to be the heart-breaking plight of low-income minorities? WTF? These poor things bought a $342k house, and have to limit cell phone calls, eating out and weekend trips? Gimme a break. Their lifestyle sounds downright opulent compared to mine.

Merlin

That's right, how dare they want to do things such as eating and talking.

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Daedalus

You can't talk unless it's into a cell phone? You don't eat unless the food is from a restaurant? Perhaps that is why he got fired as a chef--his own wife wouldn't eat his cooking.

johnnymk