BusinessWeek: Why housing could fall 25%

[HLS]

JP,
Affordability is needed to bring the reality back.

You need to understand markets and bubbles, regardless of the product involved. The bubble bursts, and people are in denial all the way down, basing their perception on the peak prices.

Houses were never really worth what they were selling for.
It was greed that kept many people from selling in 2004-05, they wanted more.

It was 100% financing that fueled the mania, nothing more.

There are over 18,500 properties for sale in SD county this week, and over 50,000 in Riverside.

In December, about 1500 sold, about 8% of what is listed for sale in SD. There are thousands of other houses that people would gladly sell today, if only they could get the unrealistic price that they have in their mind.

It looks like January sales are 50% REO/lender owned, meaning that the public is being totally unrealistic about their asking prices.

As of today, most people are completely in fantasyland about the real value of their house today. If they HAD to sell it, it’s probably worth 25%-30% than they think, and will probably be worth less next year.

Nobody HAS TO buy a house, people want to buy.
Some people HAVE TO sell a house, and can only get what it is worth in today’s market.

I’m in the mortgage business. I see the real messes that some people are in. I hear the horror stories.

Many people who want to buy today simply do not qualify.

If conforming loan limits do get raised, everybody already assumes that pricing will be the same as today’s conforming amount. I don’t know if that is true.

For people who do qualify, they may just get cheaper loans. People who don’t qualify, still won’t qualify for a $600K loan.

The govt is willing to try ANYTHING to keep the house of cards from collapsing. Their concern is the economy, not the homeowner.

When a lender says that they want to help the “homeowner” stay in their house, it’s a lie. They really want to keep from having another foreclosure that they will lose money on.

If they were truly trying to help the public, they would make people realize that the best thing for many people is to walk away, after 6 mos + of no payments, and saving up some money.

Instead of being in debt for $600K on a home worth $450K today, they can go rent for much less than their ownership payment, and probably buy a similar property back in several years for $300K.

That won’t be good for the economy.

[jpinpb]

HLS – I have to agree that affordability is a factor. But that is also why none of this makes sense to me. The median priced home in San Diego, they say now, is $440k. I think it may be off. Whatever. The median income is something like $50k. To be fair, we’ll say the average household is a couple, so that bumps it up, one earning more, so we should say about $85k? But if we say it’s a married couple, chances are they have a kid – maybe two – added expense.

Is the median income net or gross?

Most people don’t have 5% to slap down on a house, plus the 6% realtor commission, plus closing costs, if any. We’re looking at $22k + 26 = $48k+.
Almost 50k needed to get a place.

If a house is $440k and say they were lucky to get a loan today w/zero down @ 5.5%, the payment is 2,498, adding to that prop. tax of 366, plus insurance, I’m not sure, $100 – hoping there is no HOA, we’re at $2,964. Let’s say 3k easy math.

When we add to that utilities (gas, electric, phone – cable if they’re splurging) then add food and clothing, gasoline. Shall we add car payments. Very few people know or want to drive a car into the ground. I’ve done this in my life many times, but most people don’t. Most people want a new car. The lowest car payment I’ve seen for a new car is about $150 a month. Shall we times 2 for the couple.
We’ve got to be at around $2,500 by now, thereabouts, being very conservative.

What if they have a student loan or credit card payments?

This leaves very little room at the end of the month for much else.

So how the hell are these people doing it?

Consumer spending amounts to 2/3 of our economy.

How or what incentive is there to save when interest rate keeps going down.

This whole economy is not making sense. If you do the right thing, and save and don’t go in over your head, you’re screwed and never get ahead. Catch-22.

So frustrated. Thanks for your wise words.

[jpinpb]

HLS – I have to agree that affordability is a factor. But that is also why none of this makes sense to me. The median priced home in San Diego, they say now, is $440k. I think it may be off. Whatever. The median income is something like $50k. To be fair, we’ll say the average household is a couple, so that bumps it up, one earning more, so we should say about $85k? But if we say it’s a married couple, chances are they have a kid – maybe two – added expense.

Is the median income net or gross?

Most people don’t have 5% to slap down on a house, plus the 6% realtor commission, plus closing costs, if any. We’re looking at $22k + 26 = $48k+.
Almost 50k needed to get a place.

If a house is $440k and say they were lucky to get a loan today w/zero down @ 5.5%, the payment is 2,498, adding to that prop. tax of 366, plus insurance, I’m not sure, $100 – hoping there is no HOA, we’re at $2,964. Let’s say 3k easy math.

When we add to that utilities (gas, electric, phone – cable if they’re splurging) then add food and clothing, gasoline. Shall we add car payments. Very few people know or want to drive a car into the ground. I’ve done this in my life many times, but most people don’t. Most people want a new car. The lowest car payment I’ve seen for a new car is about $150 a month. Shall we times 2 for the couple.
We’ve got to be at around $2,500 by now, thereabouts, being very conservative.

What if they have a student loan or credit card payments?

This leaves very little room at the end of the month for much else.

So how the hell are these people doing it?

Consumer spending amounts to 2/3 of our economy.

How or what incentive is there to save when interest rate keeps going down.

This whole economy is not making sense. If you do the right thing, and save and don’t go in over your head, you’re screwed and never get ahead. Catch-22.

So frustrated. Thanks for your wise words.

[jpinpb]

HLS – I have to agree that affordability is a factor. But that is also why none of this makes sense to me. The median priced home in San Diego, they say now, is $440k. I think it may be off. Whatever. The median income is something like $50k. To be fair, we’ll say the average household is a couple, so that bumps it up, one earning more, so we should say about $85k? But if we say it’s a married couple, chances are they have a kid – maybe two – added expense.

Is the median income net or gross?

Most people don’t have 5% to slap down on a house, plus the 6% realtor commission, plus closing costs, if any. We’re looking at $22k + 26 = $48k+.
Almost 50k needed to get a place.

If a house is $440k and say they were lucky to get a loan today w/zero down @ 5.5%, the payment is 2,498, adding to that prop. tax of 366, plus insurance, I’m not sure, $100 – hoping there is no HOA, we’re at $2,964. Let’s say 3k easy math.

When we add to that utilities (gas, electric, phone – cable if they’re splurging) then add food and clothing, gasoline. Shall we add car payments. Very few people know or want to drive a car into the ground. I’ve done this in my life many times, but most people don’t. Most people want a new car. The lowest car payment I’ve seen for a new car is about $150 a month. Shall we times 2 for the couple.
We’ve got to be at around $2,500 by now, thereabouts, being very conservative.

What if they have a student loan or credit card payments?

This leaves very little room at the end of the month for much else.

So how the hell are these people doing it?

Consumer spending amounts to 2/3 of our economy.

How or what incentive is there to save when interest rate keeps going down.

This whole economy is not making sense. If you do the right thing, and save and don’t go in over your head, you’re screwed and never get ahead. Catch-22.

So frustrated. Thanks for your wise words.

[jpinpb]

HLS – I have to agree that affordability is a factor. But that is also why none of this makes sense to me. The median priced home in San Diego, they say now, is $440k. I think it may be off. Whatever. The median income is something like $50k. To be fair, we’ll say the average household is a couple, so that bumps it up, one earning more, so we should say about $85k? But if we say it’s a married couple, chances are they have a kid – maybe two – added expense.

Is the median income net or gross?

Most people don’t have 5% to slap down on a house, plus the 6% realtor commission, plus closing costs, if any. We’re looking at $22k + 26 = $48k+.
Almost 50k needed to get a place.

If a house is $440k and say they were lucky to get a loan today w/zero down @ 5.5%, the payment is 2,498, adding to that prop. tax of 366, plus insurance, I’m not sure, $100 – hoping there is no HOA, we’re at $2,964. Let’s say 3k easy math.

When we add to that utilities (gas, electric, phone – cable if they’re splurging) then add food and clothing, gasoline. Shall we add car payments. Very few people know or want to drive a car into the ground. I’ve done this in my life many times, but most people don’t. Most people want a new car. The lowest car payment I’ve seen for a new car is about $150 a month. Shall we times 2 for the couple.
We’ve got to be at around $2,500 by now, thereabouts, being very conservative.

What if they have a student loan or credit card payments?

This leaves very little room at the end of the month for much else.

So how the hell are these people doing it?

Consumer spending amounts to 2/3 of our economy.

How or what incentive is there to save when interest rate keeps going down.

This whole economy is not making sense. If you do the right thing, and save and don’t go in over your head, you’re screwed and never get ahead. Catch-22.

So frustrated. Thanks for your wise words.

[jpinpb]

HLS – I have to agree that affordability is a factor. But that is also why none of this makes sense to me. The median priced home in San Diego, they say now, is $440k. I think it may be off. Whatever. The median income is something like $50k. To be fair, we’ll say the average household is a couple, so that bumps it up, one earning more, so we should say about $85k? But if we say it’s a married couple, chances are they have a kid – maybe two – added expense.

Is the median income net or gross?

Most people don’t have 5% to slap down on a house, plus the 6% realtor commission, plus closing costs, if any. We’re looking at $22k + 26 = $48k+.
Almost 50k needed to get a place.

If a house is $440k and say they were lucky to get a loan today w/zero down @ 5.5%, the payment is 2,498, adding to that prop. tax of 366, plus insurance, I’m not sure, $100 – hoping there is no HOA, we’re at $2,964. Let’s say 3k easy math.

When we add to that utilities (gas, electric, phone – cable if they’re splurging) then add food and clothing, gasoline. Shall we add car payments. Very few people know or want to drive a car into the ground. I’ve done this in my life many times, but most people don’t. Most people want a new car. The lowest car payment I’ve seen for a new car is about $150 a month. Shall we times 2 for the couple.
We’ve got to be at around $2,500 by now, thereabouts, being very conservative.

What if they have a student loan or credit card payments?

This leaves very little room at the end of the month for much else.

So how the hell are these people doing it?

Consumer spending amounts to 2/3 of our economy.

How or what incentive is there to save when interest rate keeps going down.

This whole economy is not making sense. If you do the right thing, and save and don’t go in over your head, you’re screwed and never get ahead. Catch-22.

So frustrated. Thanks for your wise words.

[HLS]

JP, stop paying attention to the “median” it’s a meaningless, misleading statistic.

People with median incomes may have no interest in living in a median priced neighborhood.
San Diego is currently in the top 10 of unaffordable cities, based on income and cost of housing ownership.

You shouldn’t have a mortgage for more than 4x-5x your gross income, depending on your other debts.

When you know how to use cash and leverage, you will never be screwed by having money.

Lenders start with your credit score. They put you into a box whether you deserve to be there or not. One late minimum credit card payment (even $20 and an hones mistake) can whack your score 30 or 40 points. Doesn’t make you a bad person, but to FNMA you just became a bigger risk if you score falls below 680.

Realtor commissions are paid by the seller through the selling price. Nobody is getting 5.50% 100% loans today, except for one possible program which may not exist anymore.

You need that down payment, you also need additional financial reserves, and you better hope that you don’t lose your job.

Why does buying a house have to equate to getting ahead ?

It’s not in the Declaration of Independence that people are entitled to afford a house.

In Europe, for generations, people have rented. They have smaller apts/homes, but many have higher standards of living, including education, culture and travel/vacations, and they work less and enjoy life more. They never own a home.

America has been duped by marketing and Wall Street.
Many people have been weaned on propaganda from the govt and the media about what is the right thing to do throughout your life, except you do it with your money, if you have any. The American dream = owning a home ?
That’s MARKETING.

Even homeless people need $5 for Starbucks now, the 50c coffee isn’t good enough anymore. We’ve become a sick society, based upon the greater fool theory.

Why don’t people buy Rolls Royces or fly first class ?
Usually because they can’t afford it; but when people couldn’t really afford to buy houses, they went ahead and bought them anyway, and now there is outrage because they are losing what they never should have bought in the first place, that they cannot afford, and the govt wants to save them ??

We NEED a huge economic correction harder than the 1930’s depression to get the country back on track.

Maybe it will happen, maybe it won’t. Those that are prepared will survive just fine.

Thank the administration for the few good boom years of the decade, there is a price to pay for the excess, corruption and greed, and the average worker will carry afair part of this burden.

Be a happy renter instead of a miserable homeowner until you are ready and can afford what you are comfortable with.

You can borrow more money than is wise for a house as a % of your income. Just because you can get approved for 55%-60% of your gross income for your debts, doesn’t mean that you have to do it.

[HLS]

JP, stop paying attention to the “median” it’s a meaningless, misleading statistic.

People with median incomes may have no interest in living in a median priced neighborhood.
San Diego is currently in the top 10 of unaffordable cities, based on income and cost of housing ownership.

You shouldn’t have a mortgage for more than 4x-5x your gross income, depending on your other debts.

When you know how to use cash and leverage, you will never be screwed by having money.

Lenders start with your credit score. They put you into a box whether you deserve to be there or not. One late minimum credit card payment (even $20 and an hones mistake) can whack your score 30 or 40 points. Doesn’t make you a bad person, but to FNMA you just became a bigger risk if you score falls below 680.

Realtor commissions are paid by the seller through the selling price. Nobody is getting 5.50% 100% loans today, except for one possible program which may not exist anymore.

You need that down payment, you also need additional financial reserves, and you better hope that you don’t lose your job.

Why does buying a house have to equate to getting ahead ?

It’s not in the Declaration of Independence that people are entitled to afford a house.

In Europe, for generations, people have rented. They have smaller apts/homes, but many have higher standards of living, including education, culture and travel/vacations, and they work less and enjoy life more. They never own a home.

America has been duped by marketing and Wall Street.
Many people have been weaned on propaganda from the govt and the media about what is the right thing to do throughout your life, except you do it with your money, if you have any. The American dream = owning a home ?
That’s MARKETING.

Even homeless people need $5 for Starbucks now, the 50c coffee isn’t good enough anymore. We’ve become a sick society, based upon the greater fool theory.

Why don’t people buy Rolls Royces or fly first class ?
Usually because they can’t afford it; but when people couldn’t really afford to buy houses, they went ahead and bought them anyway, and now there is outrage because they are losing what they never should have bought in the first place, that they cannot afford, and the govt wants to save them ??

We NEED a huge economic correction harder than the 1930’s depression to get the country back on track.

Maybe it will happen, maybe it won’t. Those that are prepared will survive just fine.

Thank the administration for the few good boom years of the decade, there is a price to pay for the excess, corruption and greed, and the average worker will carry afair part of this burden.

Be a happy renter instead of a miserable homeowner until you are ready and can afford what you are comfortable with.

You can borrow more money than is wise for a house as a % of your income. Just because you can get approved for 55%-60% of your gross income for your debts, doesn’t mean that you have to do it.

[HLS]

JP, stop paying attention to the “median” it’s a meaningless, misleading statistic.

People with median incomes may have no interest in living in a median priced neighborhood.
San Diego is currently in the top 10 of unaffordable cities, based on income and cost of housing ownership.

You shouldn’t have a mortgage for more than 4x-5x your gross income, depending on your other debts.

When you know how to use cash and leverage, you will never be screwed by having money.

Lenders start with your credit score. They put you into a box whether you deserve to be there or not. One late minimum credit card payment (even $20 and an hones mistake) can whack your score 30 or 40 points. Doesn’t make you a bad person, but to FNMA you just became a bigger risk if you score falls below 680.

Realtor commissions are paid by the seller through the selling price. Nobody is getting 5.50% 100% loans today, except for one possible program which may not exist anymore.

You need that down payment, you also need additional financial reserves, and you better hope that you don’t lose your job.

Why does buying a house have to equate to getting ahead ?

It’s not in the Declaration of Independence that people are entitled to afford a house.

In Europe, for generations, people have rented. They have smaller apts/homes, but many have higher standards of living, including education, culture and travel/vacations, and they work less and enjoy life more. They never own a home.

America has been duped by marketing and Wall Street.
Many people have been weaned on propaganda from the govt and the media about what is the right thing to do throughout your life, except you do it with your money, if you have any. The American dream = owning a home ?
That’s MARKETING.

Even homeless people need $5 for Starbucks now, the 50c coffee isn’t good enough anymore. We’ve become a sick society, based upon the greater fool theory.

Why don’t people buy Rolls Royces or fly first class ?
Usually because they can’t afford it; but when people couldn’t really afford to buy houses, they went ahead and bought them anyway, and now there is outrage because they are losing what they never should have bought in the first place, that they cannot afford, and the govt wants to save them ??

We NEED a huge economic correction harder than the 1930’s depression to get the country back on track.

Maybe it will happen, maybe it won’t. Those that are prepared will survive just fine.

Thank the administration for the few good boom years of the decade, there is a price to pay for the excess, corruption and greed, and the average worker will carry afair part of this burden.

Be a happy renter instead of a miserable homeowner until you are ready and can afford what you are comfortable with.

You can borrow more money than is wise for a house as a % of your income. Just because you can get approved for 55%-60% of your gross income for your debts, doesn’t mean that you have to do it.

[HLS]

JP, stop paying attention to the “median” it’s a meaningless, misleading statistic.

People with median incomes may have no interest in living in a median priced neighborhood.
San Diego is currently in the top 10 of unaffordable cities, based on income and cost of housing ownership.

You shouldn’t have a mortgage for more than 4x-5x your gross income, depending on your other debts.

When you know how to use cash and leverage, you will never be screwed by having money.

Lenders start with your credit score. They put you into a box whether you deserve to be there or not. One late minimum credit card payment (even $20 and an hones mistake) can whack your score 30 or 40 points. Doesn’t make you a bad person, but to FNMA you just became a bigger risk if you score falls below 680.

Realtor commissions are paid by the seller through the selling price. Nobody is getting 5.50% 100% loans today, except for one possible program which may not exist anymore.

You need that down payment, you also need additional financial reserves, and you better hope that you don’t lose your job.

Why does buying a house have to equate to getting ahead ?

It’s not in the Declaration of Independence that people are entitled to afford a house.

In Europe, for generations, people have rented. They have smaller apts/homes, but many have higher standards of living, including education, culture and travel/vacations, and they work less and enjoy life more. They never own a home.

America has been duped by marketing and Wall Street.
Many people have been weaned on propaganda from the govt and the media about what is the right thing to do throughout your life, except you do it with your money, if you have any. The American dream = owning a home ?
That’s MARKETING.

Even homeless people need $5 for Starbucks now, the 50c coffee isn’t good enough anymore. We’ve become a sick society, based upon the greater fool theory.

Why don’t people buy Rolls Royces or fly first class ?
Usually because they can’t afford it; but when people couldn’t really afford to buy houses, they went ahead and bought them anyway, and now there is outrage because they are losing what they never should have bought in the first place, that they cannot afford, and the govt wants to save them ??

We NEED a huge economic correction harder than the 1930’s depression to get the country back on track.

Maybe it will happen, maybe it won’t. Those that are prepared will survive just fine.

Thank the administration for the few good boom years of the decade, there is a price to pay for the excess, corruption and greed, and the average worker will carry afair part of this burden.

Be a happy renter instead of a miserable homeowner until you are ready and can afford what you are comfortable with.

You can borrow more money than is wise for a house as a % of your income. Just because you can get approved for 55%-60% of your gross income for your debts, doesn’t mean that you have to do it.

[HLS]

JP, stop paying attention to the “median” it’s a meaningless, misleading statistic.

People with median incomes may have no interest in living in a median priced neighborhood.
San Diego is currently in the top 10 of unaffordable cities, based on income and cost of housing ownership.

You shouldn’t have a mortgage for more than 4x-5x your gross income, depending on your other debts.

When you know how to use cash and leverage, you will never be screwed by having money.

Lenders start with your credit score. They put you into a box whether you deserve to be there or not. One late minimum credit card payment (even $20 and an hones mistake) can whack your score 30 or 40 points. Doesn’t make you a bad person, but to FNMA you just became a bigger risk if you score falls below 680.

Realtor commissions are paid by the seller through the selling price. Nobody is getting 5.50% 100% loans today, except for one possible program which may not exist anymore.

You need that down payment, you also need additional financial reserves, and you better hope that you don’t lose your job.

Why does buying a house have to equate to getting ahead ?

It’s not in the Declaration of Independence that people are entitled to afford a house.

In Europe, for generations, people have rented. They have smaller apts/homes, but many have higher standards of living, including education, culture and travel/vacations, and they work less and enjoy life more. They never own a home.

America has been duped by marketing and Wall Street.
Many people have been weaned on propaganda from the govt and the media about what is the right thing to do throughout your life, except you do it with your money, if you have any. The American dream = owning a home ?
That’s MARKETING.

Even homeless people need $5 for Starbucks now, the 50c coffee isn’t good enough anymore. We’ve become a sick society, based upon the greater fool theory.

Why don’t people buy Rolls Royces or fly first class ?
Usually because they can’t afford it; but when people couldn’t really afford to buy houses, they went ahead and bought them anyway, and now there is outrage because they are losing what they never should have bought in the first place, that they cannot afford, and the govt wants to save them ??

We NEED a huge economic correction harder than the 1930’s depression to get the country back on track.

Maybe it will happen, maybe it won’t. Those that are prepared will survive just fine.

Thank the administration for the few good boom years of the decade, there is a price to pay for the excess, corruption and greed, and the average worker will carry afair part of this burden.

Be a happy renter instead of a miserable homeowner until you are ready and can afford what you are comfortable with.

You can borrow more money than is wise for a house as a % of your income. Just because you can get approved for 55%-60% of your gross income for your debts, doesn’t mean that you have to do it.

[jpinpb]

I have some family in Italy. They own their own homes. Generally passed down through the family. They never sell.

I don’t own a home for the very reason that I could not afford one. I hope to one day afford one. I don’t have much of a choice but wait, save, limit my debt, hope prices come down to something reasonable, hope I don’t have to move out of state.

I already missed the no money down, interest only train. It made no sense. I was pressure by friends, family, realtors, and lenders. I did not want to gamble w/an interest rate that could change, even when they said I could always refinance, I kept thinking whatifs, if there is pre-payment penalty, if the value comes down even 5%, etc.

When the subprime mess hit the fan, I felt like I did the right thing. But now government coming to the rescue, I feel like I was punished for doing the right thing.

I do agree w/you that a correction is in order. Just b/c I think that or you think that, doesn’t mean it’s going to happen. I know it’s not in the Declaration that people are entitled to afford a house, but it’s nice after working hard, you can come home and say, “I’m working hard for this. It’ll be mine.” I mean, ever since people came to America, the pioneers bought land, built their cabins. It just seems like a reward for all the hard work.

I’ve owned a house before and it is a good feeling, something tangible. And I’m not even a consumer or materialistic at all. I don’t give into that. Yet, something about having your own place, though.

[jpinpb]

I have some family in Italy. They own their own homes. Generally passed down through the family. They never sell.

I don’t own a home for the very reason that I could not afford one. I hope to one day afford one. I don’t have much of a choice but wait, save, limit my debt, hope prices come down to something reasonable, hope I don’t have to move out of state.

I already missed the no money down, interest only train. It made no sense. I was pressure by friends, family, realtors, and lenders. I did not want to gamble w/an interest rate that could change, even when they said I could always refinance, I kept thinking whatifs, if there is pre-payment penalty, if the value comes down even 5%, etc.

When the subprime mess hit the fan, I felt like I did the right thing. But now government coming to the rescue, I feel like I was punished for doing the right thing.

I do agree w/you that a correction is in order. Just b/c I think that or you think that, doesn’t mean it’s going to happen. I know it’s not in the Declaration that people are entitled to afford a house, but it’s nice after working hard, you can come home and say, “I’m working hard for this. It’ll be mine.” I mean, ever since people came to America, the pioneers bought land, built their cabins. It just seems like a reward for all the hard work.

I’ve owned a house before and it is a good feeling, something tangible. And I’m not even a consumer or materialistic at all. I don’t give into that. Yet, something about having your own place, though.

[jpinpb]

I have some family in Italy. They own their own homes. Generally passed down through the family. They never sell.

I don’t own a home for the very reason that I could not afford one. I hope to one day afford one. I don’t have much of a choice but wait, save, limit my debt, hope prices come down to something reasonable, hope I don’t have to move out of state.

I already missed the no money down, interest only train. It made no sense. I was pressure by friends, family, realtors, and lenders. I did not want to gamble w/an interest rate that could change, even when they said I could always refinance, I kept thinking whatifs, if there is pre-payment penalty, if the value comes down even 5%, etc.

When the subprime mess hit the fan, I felt like I did the right thing. But now government coming to the rescue, I feel like I was punished for doing the right thing.

I do agree w/you that a correction is in order. Just b/c I think that or you think that, doesn’t mean it’s going to happen. I know it’s not in the Declaration that people are entitled to afford a house, but it’s nice after working hard, you can come home and say, “I’m working hard for this. It’ll be mine.” I mean, ever since people came to America, the pioneers bought land, built their cabins. It just seems like a reward for all the hard work.

I’ve owned a house before and it is a good feeling, something tangible. And I’m not even a consumer or materialistic at all. I don’t give into that. Yet, something about having your own place, though.

[jpinpb]

I have some family in Italy. They own their own homes. Generally passed down through the family. They never sell.

I don’t own a home for the very reason that I could not afford one. I hope to one day afford one. I don’t have much of a choice but wait, save, limit my debt, hope prices come down to something reasonable, hope I don’t have to move out of state.

I already missed the no money down, interest only train. It made no sense. I was pressure by friends, family, realtors, and lenders. I did not want to gamble w/an interest rate that could change, even when they said I could always refinance, I kept thinking whatifs, if there is pre-payment penalty, if the value comes down even 5%, etc.

When the subprime mess hit the fan, I felt like I did the right thing. But now government coming to the rescue, I feel like I was punished for doing the right thing.

I do agree w/you that a correction is in order. Just b/c I think that or you think that, doesn’t mean it’s going to happen. I know it’s not in the Declaration that people are entitled to afford a house, but it’s nice after working hard, you can come home and say, “I’m working hard for this. It’ll be mine.” I mean, ever since people came to America, the pioneers bought land, built their cabins. It just seems like a reward for all the hard work.

I’ve owned a house before and it is a good feeling, something tangible. And I’m not even a consumer or materialistic at all. I don’t give into that. Yet, something about having your own place, though.

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