Originally Posted by acmarttin
I agree with the points you make about the circumstances ('cause they're correct) so don't get me wrong there.. but with each new day here in Las Vegas it's starting to seem more and more like a crisis. The effects of the foreclosure rates here are starting to have a negative effect our crime rate (which was already too high during the good times) and things of that nature. It's starting to drive business out of town. It's all a big circle jerk, as you know.
Which BTW, Texas is also a state that's being heavily affected by this credit crunch, correct?
I suppose the only good thing that will come out of this for a young guy like me is I may be able to get a loan (the right way, of course) on a home as the prices have gone down drastically. I've even seen incentives like full kitchen appliances & upgraded counter-tops, things of that nature, for free just to try and get people to buy homes again. And I mean on top of the lowered prices.
My grandpa reported to me that in his neighborhood about half of 60 some homes have signs on the lawn. And that's just one sub-division  |
In other words.. "the bubble has burst".
In Texas we never had a "bubble" - no-one was buying $200,000 houses for $600,000 with loans they could not afford.
If house prices n Vegas never jumped to artificial highs, people would not be stuck with houses that are now worth less than the balance they still owe on the mortgage.
This is the ugly spiral... house prices dropping so you cant sell the house you cant afford, because no-one wants to buy.
Southern Cali, Vegas and South Central Florida I believe had the most insane property price rises over the last 5 years.. and these "false" values are now correcting - and the people who "own" these houses are screwed.
Originally Posted by graywolf624
While no one will argue these facts exist the point we are trying to make is that home ownership was artifically high..
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I would rather say "home ownership of really expensive homes, was artificially high.
What I witnessed was people moving up to really expensive houses, that they could only afford because of "creative financing".
You had a case where people did not want to settle for an older $150,000 house they could afford.. when "the builder and bank could get youinto a $350,000 home - You deserve it
"
I would rather see 95% home ownership - as property ownership (that you can afford) does something for the population, makes them "better" - but sadly human nature cant settle for "what you can afford"
hehe