2011 Sep 22, 4:08am
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I just don't understand the mentality of those who think the housing market has turned around and start investing again. The Great Depression of 1930 had two dips. The first dip hit the middle class. The second one hit the wealthy, when they have decided that it was good time to invest. When I hear the investors are snatching up the properties, I wonder if they even remember the history.
We need to look at the bottom line.
1. There is a huge shadow inventory of properties.
2. The housing price is still higher than 4X the
average annual income.
3. The average middle income has not increased in
the last few years.
4. The basic cost of living went up. (correct me if I am
wrong. But I feel this one.)
5. The unemployment is still high.
6. The banks are practically refusing to finance.
Well, let's see the positives.
1. The interest rates are low.
Beside #1, I just don't see anything good about our
economy. Do you? I would like to see some positive
comment about our economy delusional or real.
Looking at the bottom line, I think our only solution
is the job with higher pay. Let me hear your opinion.
I would add a number 7 to the list.
7. Potential young homebuyers who want to start a family are coming out of college with large amounts of debt.