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As far as Failure of the American Dream thread (in this formum) the above article indicates we are seeing the Death of the American Dream. The stats are not good news. We are witnessing a shift in wealth from middle & working class families, to the wealthy class.
When you put this on the table with other recent data, we seem headed for trouble in home ownership (for starters) with other areas bound to follow. Per the Washington Post on 25 Aug: “In the past 5 years, housing prices in Fairfax County have grown 12 times as fast as household incomes. Today, the county's median family would have to spend 54% of its income to afford the county's median home; in 2000, the figure was 26%. The situation is so dire that Fairfax recently began offering housing subsidies to families earning $90,000 a year; soon, that figure may go as high as $110,000 a year.” The rest of the story is at http://www.washingtonpost.com/wp-dyn...082501197.html
Most young folks are priced out and must move 25-50 miles further west of DC, or up to Baltimore, where home prices are lower and they can qualify for a mortgage - they then commute back into the city every day - this is known as "driving to qualify" relative to getting a mortgage. The same situation is at work in many other large, expensive metropolitan areas.
Housing subsidies for familieis making $90K a year? That's ridiculous. Work two jobs, as I did for some time. Move farther out and get a cheaper house. Don't have children if you can't afford to support them without gov't help. I agree the situation is tough, but where there's a will there's a way. Free money infuriates me like none other...
Housing subsidies for families making $90K a year? That's ridiculous. Work two jobs, as I did for some time. Move farther out and get a cheaper house. Don't have children if you can't afford to support them without gov't help. I agree the situation is tough, but where there's a will there's a way. Free money infuriates me like none other...
It worries me that inflation in home prices is 12 times inflation in income. It isn't logical. It's a stepchild of low interest rates which allowed people to pay higher prices for a home, so free-market forces worked to raise prices of homes to sop up people's ability to pay. I suspect a severe correction is due. The Fed tried to ease us into reality by ratcheting up interest rates, but major deflation in home prices may occur. If true, trillion$ in equity will evaporate, and may trigger a mass of foreclosures which could overwhelm the banking system. Perhaps my concerns are overstated, but that's where I think the danger lies.
The article also bums me when I see earnings of the middle class go down, despite their best efforts to raise themselves up.
What about all the people that applied for 100% financing, plus 6% sellers concession? And got it? How are they possibly going to re-finance themselves out of that one? First issue, the home they bought at top dollar when the interest rates were low is now decreasing in price and interest rates have climbed. Where is the net benefit? OHHHHHHHHH YYYEEAAHHH, there will be a ton of foreclosures, and who will profit from that???? You guessed it.............
Just driving around San Antonio you see new houses being built EVERYWHERE and prices going up ALMOST EVERYWHERE. You might think there are thousands of people moving to San Antonio each month, even though the job market is not growing fast here. Then you check the home builders web site and see lots of available houses that are finished or will be finished in a month or so. You didn't see this two years ago. Then you see the houses sold on the streets and rental signs in front of the house. This is happening in the low and middle priced homes (up to $200K). There will probably be some weeping by investors in other states when the rental market is saturated and prices start falling.
What about all the people that applied for 100% financing, plus 6% sellers concession? And got it? How are they possibly going to re-finance themselves out of that one? First issue, the home they bought at top dollar when the interest rates were low is now decreasing in price and interest rates have climbed. Where is the net benefit? OHHHHHHHHH YYYEEAAHHH, there will be a ton of foreclosures, and who will profit from that???? You guessed it.............
THANK YOU!!!!!!!!!!!!!!!!!!!!!!!!!!
You are the first person I've EVER heard say this other than myself!!!!!!!!!!
I've said that for years, too.
I've never been able to comprehend breeding like bunnies unless one is fully prepared and capable of being responsible and caring parents. It's the kids who lose, very sad.
I've said that for years, too.
I've never been able to comprehend breeding like bunnies unless one is fully prepared and capable of being responsible and caring parents. It's the kids who lose, very sad.
I have also said that, maybe not here, but here and now I want to be on the record: Don't have children expecting the government (us) to take care of them.
[quote=pkoons;75522]Don't have children if you can't afford to support them without gov't help. QUOTE]
Well said....Bravo....
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Everything is Raising in San Antonio
