| | A Negative Housing Market?Anyone with there eyes half open will be aware that the economic situation of the middle and lower classes is somewhat disparaging. This is most always attributed to a rise in commodity prices coupled with a downturn in the housing market. The commodity inflation can almost certainly be attributed to the rising price of crude oil and I doubt there is any near relief for this trend. The fall in housing prices is also certainly a blow for many people view their estate as their most significant (or only) investment. For years housing prices have climbed steadily and slowly, but in recent history that price inflation has increased astronomically. People all talked about the "housing bubble" but few believed it would "pop". The problem was that the inflation of house prices well exceeded the increase of salaries. For the population of home owners this was hardly a problem because selling their home at the inflated rate meant they could buy another home at the inflated price. The low interest rates also prompted many first time buyers to buy outside of their means and the subsequent slowing economy and rising interest rates has been tragically hard on many families with ARMs. In the end there is some hope for those of us who have yet to buy our first house. As the economy continues to slow and housing prices settle to more appropriate levels, we find that the interest rates have also been lowered to help support a credit driven economy. It is my hope that the next year will prove to be the best time for anyone to buy a house. I just hope that you don't have to sell one first.
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| | Posted 4/24/2008 11:35 AM - 0 comments
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