House prices are going down!

@Mirita (2668)
United States
August 24, 2007 10:41am CST
I feel that is only fair that house prices are going down ,so everyone can have the opportunity to own a piece of property. I bought my house 10 years ago ,but if I wanted to buy a house now it would be very difficult because of the ridiculous prices. I know it feels good when sellers can make a good profit by selling their houses ,but home prices were going up too much. Who can afford these high prices? People were approved ,but ended up with adjustable rates and interest only loans in order to qualified. Foreclosures are on the rise ,and people are having a hard time keeping up with their payments. Anyone in this particular situation or anyone upset about the house prices going down?
1 response
pismeof
@pismeof (855)
• United States
24 Aug 07
The reason the prices of Homes are going down is because the owners CAN'T unload them .All those sub-prime loans that you refer to is the reason for the housing crunch.The institutions that approved those loans are losing their value on the Stock Market and will create a ripple throughout the economy. Banks will increase interest rates and credit worthy requirements so even fewer people will qualify to buy a Home. The only people who will gain from this are speculators with finances all ready and waiting to pounce on the best deals. Maybe after a couple of years prices will stabilise but,in the meantime well be confronted with an economic recession.
1 person likes this
Mirita
@Mirita (2668)
• United States
25 Aug 07
Yes, you have a good point ,but those people ended up with those types of loans because this was the only way that they could qualified for those expensive houses. I feel that now is a buyer's market and the interest loans are still okay. I feel that anything that goes up too fast comes down too. Even with a low interest rate who can afford a 750,000 house? I went to Miami this past summer and my friends were working two jobs in order to survive because the house payments and the taxes were killin them. A lot of people are even moving to less expensive places.