[quote=CA renter]The main reason for today’s foreclosures is not that people “bought too much house,” but that they PAID TOO MUCH for those houses with idiotic ARM mortgages when rates were at generational lows (the lenders were trying to shift the interest rate risk onto the borrowers).
Also, there is nothing wrong with a professional (single or couple) wanting to live in a safe, clean, decent area with similar people. Some people can move into these neighborhoods by “moving up” from starter homes, but first-time buyers who have worked many years to earn advanced degrees, have responsible positions, and who have saved up a decent down payment are just as “entitled” to live in the move-up neighborhoods as any “move-up” buyer.
While you are perfectly welcome to live in the areas you like, other people are welcome to live in neighborhoods of their choosing as well. I don’t think people are “whining” about the fundamentals of housing prices; they are “whining” about all the manipulation that is forcing buyers to overpay for housing. That’s a VERY legitimate complaint.[/quote]
CAR – you know I agree w/your views on this. This really should not even need to be said. Too many endless reasons why housing prices were so abnormally high. People continued to pay too much and specuvestors jumped in spurring demand and pushing prices even higher.
I feel the frustration of everyone who wants to buy a house in a nice area and didn’t do it during the bubble b/c they knew they were financially not able to do it and watched everyone else who do it only to set themselves up for financial ruin and who are still waiting for prices to adjust from the dizzying highs.
Those who were financially responsible are the true victims.
