My bad choice was buying a home to live in. I wasn’t counting on the 45% equity and I never “realized” it because I didn’t sell.
I would be perfectly happy if my home had stayed flat for the past 4 years.
Instead, Countywide et al, made a bunch of bad loans to people who couldn’t afford them causing them to foreclose. Now Countrywide et al is dumping these units back on the market at reduced prices because they have to get rid of them.
If Countrywide hadn’t loaned $900,000 to 25 year olds at teaser rates, no one would have been able to afford the units. Therefore, prices would have been tempered and we wouldn’t have the overbuilding and wild price drops.
Units in concrete buildings are now trading near replacement costs.
