Higher home prices makes people FEEL rich,, just thinking that it’s worth more, people spend… More people already have houses than are looking to buy.
When people FEEL rich they spend money. With equity, you can borrow more, create more debt.
Govt loves the illusion.
Property taxes are higher,and people are paying them, the champagne is flowing. credit is easy, the faucet is on.
Home builders, contractors, furniture stores, used house sales people, mortgage scum, wall street gangsters all made huge amounts of money,
While only 10% can afford to buy, 75% already own.
Turn the faucet off and the well runs dry. Jobs are lost, stores are closing, BK’s and foreclosures will continue. In many areas house prices don’t need to go lower. You are way too focused on So CA, which is a thorn in the housing market…
The confidence is gone. It’s not coming back anytime soon… Most people aren’t as smart as they thought they were. Welcome to 2009, the “Greater Depression” is knocking… HLS[/quote]
HLS, great post. Laughted my ass off till I realized how much of that is true today. I think I need a beer or 12. 🙂
