Must Buy vs. Must Sell / Want to Buy vs. Afford to Buy

A few years ago, many felt they must buy or be priced out forever. Whatever they wanted to buy, they can afford to buy. Now, some people must sell and for those who want to buy still cannot afford to because the prices have not dropped enough and credit is harder to get. People who don't have to sell, won't sell. End of 2010 predictions: Home buyer tax credit is no more. People accepted that the... [more]

A few years ago, many felt they must buy or be priced out forever. Whatever they wanted to buy, they can afford to buy. Now, some people must sell and for those who want to buy still cannot afford to because the prices have not dropped enough and credit is harder to get. People who don't have to sell, won't sell. End of 2010 predictions: Home buyer tax credit is no more. People accepted that the refi program only delayed foreclosures. Wall street spent their bonus much more conservatively than expected. Interest rate will inch up a little or at least expected to quickly. Unemployment is lower than 10%, BUT still over 9% Taxes will be higher Found that most of the city is still not owned by foreign investors. Appreciation in home value is not how a nation builds wealth, unless the intention is to sell ALL your homes to foreign investors. The country can only truly build wealth through producing and selling products and services. If housing cost drops to within reasonable ratio to income level, it is a good thing for the nation as a whole in the long term. A truly rich nation is one where food, shelter, and health is affordable to all. Ok, I'm done ranting and playing oracle. Have a nice weekend! [less]