Further fueling the housing market bubble...
 

The US housing market is such a joke right now. Stuff like this continues to fuel the ignorance of the typical US home investor.

http://www.condoflip.com/

Did you know that only 9% of home owners in San Diego can afford the home they live in using a standard 30 year mortgage?

In my opinion the government made a big mistake by spiking the housing market by making money so easy to get. Sure, they wanted to offset the losses of the stock market crash, but look what we're left with. A 0% savings rate and millions of citizens completely overextended trying to chase the "American Dream".

They gave everyone a "taste" of the good life which in reality is totally unsustainable in the long run for most. This will cause alot of grief and severe financial problems for millions down the road.

marc

I agree.. I'm waiting for the bubble to pop here in canada so i can go buy peoples home for next to nothing and rent it to them for a little less than what they were paying :)

I've purchased two houses in the last year, one on the water and one in the mountains... if the bubble bursts, I'll buy 5 more. Let's all cross our fingers.

buy one for me 2 :)

i would like a mountain/lake house

I'm WAITING for the bubble to pop too ... Just ask Alan [Greenspan] to hike rates to 10% and we'll have a housing market REVOLUTION!

Some more interesting San Diego stats: over 20% of the people taking out mortgages here in San Diego spend MORE than 50% of their gross income on their mortgages. AND.. if that ain't crazy, over 75% of the mortgages in San Diego are ARMs. These people are betting their houses on the fact that prices will continue to appreciate and they'll be able to cash out before interest rates rise and/or their ARMs convert. That's just sick..

I am planning a move to San Diego next summer. I hope the current weakness in that market continues.

In case some didn't know... San Diego is one of the first markets to begin slowing down. And it's slowing down quickly.

http://www.latimes.com/business/la-m...home-headlines

marc