Quote:
Originally Posted by Defiance Inc
Give it a few more years and they will be half. There is a concept called supply and demand. Stagnant wages, high unemployment, inflation, currency devaluation to name a few
are going to put a squash on the demand. Supply is already at an all time high, coupled with a new wave of foreclosures from 5yr ARM resets and unemployment will push supply
through the roof.
And we as tax payers are taking the loss. In the form of higher interest rates, bank bail outs, inflation due to printing money to bail out said banks...
Doom and gloom? Possibly, nothing is ever too big to fail.
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Exactly. The supply of land is not going to grow and the demand of a growing population is not going to shrink. What makes you think housing costs could ever plummet by such a drastic amount? Sure, corrections will happen but not wholesale devaluation.
The number of homes that are currently on 5 yr ARMs reseting or about to reset is not the majority by far.
Remember, that roughly 30% of homes are owned outright with no mortage. That leaves roughly 70% mortaged. Of that 70%, around 70% of those are in standard fixed rate long term mortages. You see how quickly the numbers are falling off here?