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I hope the Bank of England follows suit in February. An exchange rate cut is badly needed on this side of the pond too.
Well, I've been expecting this for over a year. We had a credit bubble and a housing bubble. It's popping. Even here in the "special" Bay Area where all of the fools (especially realtors) were saying things like, "Real estate never goes down," is experiencing significant price drops. We are 12.5% down in prices from a year ago and we have a 47.3% increase in housing inventory here.
Strap yourselves in and hang on... Enjoy the ride...
You are priced out of the market unless you are one of the highly overpaid professionals who make more than 5 times the average salary of the region.
Only one in ten homeowners now have the income to qualify for a loan for their house.
And suprisingly there are plenty of folks here that do earn that which keeps the real estate prices artificially high and unrealistic for most people even living here - it is the perfect example of the growing income disparity between the rich and poor, the haves and the have nots and the erosion of a middle class.
Aw come on you guys. We all know the rich are getting poorer, the poor are getting richer, the middle class is expanding, and the politicians are losing power...
Why, nonsense, earl! That's defeatist talk.
I know that because you'll find posts on this very website asserting there's certainly no reason to decry the growing gap between the rich and the, er, not-as-rich. And there's no recession looming, either.
haha. I went to an open house in the neighborhood on Sunday just to scope the house out because it was listed at $3.5 million. I naively asked the real estate agent what kind of mortgage payment that would be and she just looked me blindly in the eye and said - "People usually pay cash for anything over 3."
Gee....I remember the same events when Senior shrub was in office....hmm....
Homes in MI are cheap Cheap Cheap...
You can buy a beautiful 1500sq ft house for around 100K right now, and even less if your willing to live near the cities.
I still say buying a home is the best way to retain your money. House or Land.
They may experience a temporary drop, but for those that are stable and saved some cash.....it's a buyers market.
BUT....everyone is scared shitless right now because of the corruption in office, forclosures and banks folding left and right, and companies downsizing at unprecedented rates.
Gee....I remember the same events when Senior shrub was in office....hmm....
Not in FL, depending upon where, double triple and even quadruple that price.
I've gotten a kick out of these "Feed the Pig" commercials that are running lately to promote sensible saving.
Sadly, I don't think they'll have much effect on the hoi polloi of this great land.