The Dr. Housing Bubble website has a great write up on the state of our housing sector. While this worries me as a brand new homeowner, I am soothed by our down payment cushion, our mortgage payment that is the same as our old rent check, our loan terms, and the fact that our market was not a bubble market. My heart goes out there to people who were collateral damage in the wake of the housing bubble pump and dump. Good people bought in the middle of a bubble that they had no control over and fought.
Things will not bottom out until the millions of people living in their homes mortgage free get foreclosed on and have to move on. Those are the people not paying their mortgage but buying Ipads. The madness must stop. This is just another denial of reality. It is like Greeks protesting and killing over the need to retire at 65 instead of 61. It is similar to the Wall St banks enjoying record profits because of the FASB 157 rule that allows them to not realize huge loan losses. We need to look in the mirror and first admit we have a problem before any change will happen.