Housing Doom Housing Bubble Blog

So, one day to decide, one to vote, and lots to figure out what happened.

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There have been some warnings that home buyers who came late to the party could be in trouble.  According to David Lereah, Chief Economist for the National Association of Realtors:

Buyers in most of the country who plan to stay in their home for a normal period of homeownership can pretty well bank on those historic averages, but people who purchased last year with the intent of flipping are likely to get burned.

Gerri Willis of CNN Open House reports:

Prices have risen 60 percent in the last five years, so if you’ve owned your home for much of that time at all, you may still be ahead even when the price correction ends.

So how well are the newer homes doing?  This information came from one of our favorite sources yesterday:
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Minorities Pay More

Since the Great Depression of the 1930s, both Democratic Party and Republican administrations have promoted homeownership. Federal programs have used agencies and the GSEs to deliver programs and subsidies to make housing more affordable, meaning that it would cost less to buy a home. Since the dawn of the Millenium, however, this word affordable has acquired the stench of something three weeks dead and very, very, evil. Now "affordable" means "low teaser rate", the narrow end of the alligator’s snout, ready to trap the unwary family into a mortgage that will be their ruin. Perhaps worse, since house prices nationwide have started down there is mounting evidence that the victimization is falling disproportionately on the most vulnerable.

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