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Is current housing weakness a fundamental shift away from house ownership?


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2014 Jul 14, 11:38pm   994 views  4 comments

by golfplan18   ➕follow (1)   💰tip   ignore  

http://ochousingnews.com/blog/is-current-housing-weakness-a-fundamental-shift-away-from-home-ownership/

Housing sector weakness may be a sign of a change in attitudes away from home ownership as defining the American Dream.

When house prices crashed in 2008, we had an opportunity to usher in a new era of affordable housing with a lower percentage of income devoted to housing in the United States. With less income going toward housing, more income is freed up to spend on other goods and services, stimulating the economy in a sustainable way.

However, that isn’t what politicians decided to do. No, they decided to bail out the banks with a plethora of bailouts aimed at supporting the banks and the loanowners who owed them money. If we had purged the excessive debts created during the housing-credit bubble through foreclosure and recycling the homes, we would be enjoying low, affordable house prices and a strongly growing economy. Instead, we have a weak economy and a weak housing market.

Source: http://ochousingnews.com/blog/is-current-housing-weakness-a-fundamental-shift-away-from-home-ownership/#ixzz37XnOVLVH

#housing

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1   smaulgld   2014 Jul 14, 11:41pm  

Discussed the same issue yesterday

Did a cultural shift take place after the financial crisis of 2008 regarding millennials attitudes towards home ownership?

http://smaulgld.com/bank-failure-portugal-bulgaria/

2   mmmarvel   2014 Jul 15, 12:07am  

golfplan18 says

When house prices crashed in 2008, we had an opportunity to usher in a new era
of affordable housing with a lower percentage of income devoted to housing in
the United States.

However, one of the problems was that jobs/income also crashed. The economy has slowly limped back a bit but we all still know that salaries are down and prices continue to climb (in staples, utilities and home prices). Results, prices are still out of reach for too many folks (especially if you are talking about CA). I think the majority would still like/want to have a home, but for all too many people it's been and remains out of reach.

3   Diva24   2014 Jul 15, 3:10am  

Speculators, investors and flippers have blocked sensibly priced housing for too long.

IMO, flipping should be illegal.

4   everything   2014 Jul 15, 3:25am  

Well, many millennials know jobs are more temporary than ever before so they rent instead, many have student loan debt. People need to realize who owns the U.S. government, just follow the money. The two party system is really quite antiquated, and it's not really a two party system anymore .. again, follow the money. It's just a pretty large group of talking heads

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