Despite the housing slump, most middle income workers still don't earn enough to buy a median-priced home in their hometowns, according to the Center for Housing Policy.
Like some commentators have said, it's not a credit crunch. It's an asset price bubble that needs to deflate.
Don't even consider San Diego. Areas of the country with similar income as SD and 1/2 the cost of housing are having difficulties right now. It'll be a few more years before prices correct.
Imagine that. Now that you have to "prove" that you can make the payments, oh, my gosh, middle income workers still don't earn enough to buy a median-priced home.
Grrrr. The abusers of the subprime ran the prices up so high. I can't wait for this rollercoaster ride to come back down.
Yes, responsible middle-incomers are paying for the misdeeds of irresponsible poor and rich folk.
I've said for awhile now that the only people in this country that don't benefit from government welfare is the middle class. I guess the only thing that will change in the coming years is that the middle classers will join the lower classes.
Sadly, that is true. The middle class carry the load. The poor work the system. They managed to work it even w/subprimes. I gotta start hanging out w/them. They may have to teach me how to get the gov to pay for my crap. If only I could get rid of pride, integrity, dignity and all those other things that are meaningless nowadays.
Also, judging by some of the comments of some analysts, if you make a median income, too bad, you cannot afford a home. A "Let them eat cake" sort of attitude.
I mean, really, what were we thinking that being middle class entitled us to a home? Or that an affordability index mattered? Or that you were responsible and bought only what you could afford? I mean, do fundamentals really matter to Wall Street?
The unintended consequences of demolishing homes would be fun to watch though! (Of course, I mean in a purely ghoulish way!)
Can you imagine if rather than sell at a loss they tore them down and basically said up yours to everyone!? They would still owe money to someone for all the money they used to build them but now would only have land to sell for cash. But, of course, real estate only goes up, so no need to be so drastic. Ha.
Submitted by surveyor on February 7, 2008 - 9:51am.
re-development
Instead of demolition (the reason why they don't do the demolition is because it requires a lot of money) in the rustbelt, the local gov't will condemn and take ownership of abandoned houses and re-develop it into affordable housing. I don't see why they can't do that here. It's certainly a cheaper process than building brand new affordable housing.
Submitted by jpinpb on February 7, 2008 - 10:26am.
Have any of you seen some of these homes in foreclosure? Some look as if they've been demolished. People have taken EVERYTHING out, trashed the place, broken windows, etc. etc.
That one I just don't get. You take out a loan you have no business doing for buying a house you can't afford, live there for free for months before they actually get your a$$ out and then you trash the place. Nice. LOSERS.
Wow, I guess all that inventory in middle-income areas is going to sit unsold forever.
Whatever shall we do?
Maybe a lot more "creative" mortgages would help. Clearly reducing prices isn't a viable option.
Like some commentators have said, it's not a credit crunch. It's an asset price bubble that needs to deflate.
Don't even consider San Diego. Areas of the country with similar income as SD and 1/2 the cost of housing are having difficulties right now. It'll be a few more years before prices correct.
You can't stop market forces. Things will return to equilibrium.
It will just take time.
Imagine that. Now that you have to "prove" that you can make the payments, oh, my gosh, middle income workers still don't earn enough to buy a median-priced home.
Grrrr. The abusers of the subprime ran the prices up so high. I can't wait for this rollercoaster ride to come back down.
Yes, responsible middle-incomers are paying for the misdeeds of irresponsible poor and rich folk.
I've said for awhile now that the only people in this country that don't benefit from government welfare is the middle class. I guess the only thing that will change in the coming years is that the middle classers will join the lower classes.
Sadly, that is true. The middle class carry the load. The poor work the system. They managed to work it even w/subprimes. I gotta start hanging out w/them. They may have to teach me how to get the gov to pay for my crap. If only I could get rid of pride, integrity, dignity and all those other things that are meaningless nowadays.
Also, judging by some of the comments of some analysts, if you make a median income, too bad, you cannot afford a home. A "Let them eat cake" sort of attitude.
I mean, really, what were we thinking that being middle class entitled us to a home? Or that an affordability index mattered? Or that you were responsible and bought only what you could afford? I mean, do fundamentals really matter to Wall Street?
HHH
I am surprised none of the powers that be have suggested demolishing the excess inventory.
The unintended consequences of demolishing homes would be fun to watch though! (Of course, I mean in a purely ghoulish way!)
Can you imagine if rather than sell at a loss they tore them down and basically said up yours to everyone!? They would still owe money to someone for all the money they used to build them but now would only have land to sell for cash. But, of course, real estate only goes up, so no need to be so drastic. Ha.
re-development
Instead of demolition (the reason why they don't do the demolition is because it requires a lot of money) in the rustbelt, the local gov't will condemn and take ownership of abandoned houses and re-develop it into affordable housing. I don't see why they can't do that here. It's certainly a cheaper process than building brand new affordable housing.
Have any of you seen some of these homes in foreclosure? Some look as if they've been demolished. People have taken EVERYTHING out, trashed the place, broken windows, etc. etc.
That one I just don't get. You take out a loan you have no business doing for buying a house you can't afford, live there for free for months before they actually get your a$$ out and then you trash the place. Nice. LOSERS.