The other day on twitter, I dished that new home sales are down a staggering 80%. That’s an incredible drop since the boom era! It’s due largely to the fact that people just simply cannot pay back the loans they took out on their homes. I’ve been hearing a lot lately that homeowners were given loans without any proof that they had the income to pay it off. This was possible because people were bundling these “toxic assets” and selling them off to other investors – pretty much zero accountability for their investments.
Plenty of Americans are aware of this and they’re also aware that the housing market is currently in an injured state. Property values are down and don’t seem like they’ll be on the rise anytime soon. So as a general rule of keeping your money safe, Americans are staying out of the home ownership business. In fact, actual home ownership is down to its lowest level since the housing demise in the late 90s, now sitting neatly at the 33rd percentile. (This information all comes from a very informative article posted in Yahoo Business News.)
Instead of that, people are renting, and renting HARD. The market for rental properties such as Apartment Building has sky rocketed upwards of 115%!
I urge you to read the entire article HERE.
Posts Tagged ‘housing crash’
This blog serves the various bits of For Sale by Owner information that come into my grimy cyber mitts at various points throughout the year, and also brings you the latest news, talk, and gossip in the economy via the housing industry.
You really can’t read anything these days without hearing about the Recession and the many various ways that Americans dug themselves into the rut. And some of the claims and facts can be a little daunting. For instance, how do you quantify a 14 trillion dollar national debt, international currency exchange, and toxic assets?
Well, if you haven’t figured it out by now, I have found a sort of cliff notes guide to figuring out what happened to our economy over the last 5 years. Brought to you by the kind people at the fantastic radio program, This American Life, you can stream their 2008 episode called “The Giant Pool of Money” that talks all about the national debt, what caused it, and what will come of it.
CLICK HERE <<<<< to go to the streaming link.
By now, the term ”bust” has a seminal meaning. It’s all about the 2008 housing market collapse and been so overwrought in today’s economic and political nomenclature, it’s almost lost all of its meaning in the highly complex matters of real estate finance, market fluctuation, mortgage backed securities.
For those of you unaffected, it’s hard to imagine the extent of damage that the bust caused. People in the hardest hit states are still reeling from it and while you may hear of people going underwater and entire neighborhoods being foreclosed, it’s hard to picture what a once thriving suburban community can look like: a ghost town.
Luckily there’s cowboy out there. EconCat88 is a youtube channel that is completely devoted to exposing the worst of America’s burst bubble. EconCat88 drives around in his car with his video camera and gathers footage of devastated neighborhoods and business from Toledo, Detroit, and pretty much everywhere in the state of Florida. He has posted literally hundreds of these videos and it’s quite a shock to see some of the desolation that happened after the collapse.
CLICK HERE TO VIEW HIS YOUTUBE CHANNEL