My wife and I now know of 4 other couples who have got caught with 2 houses in a declining market. They bought a new home, and were "sure" that the old one would increase in price, so they waited to get a high price for the old one. Now the peak in prices has past, and they have 2 mortgages, 2 property taxes, etc. etc. They live in their declining asset, and regret it every day.
tell your friends not to worry as the government has engineered a soft landing for the real estate market...
Has anyone noticed that the same friends buying the nasdaq peak are also the same ones long real estate and in trouble?
Just remember, There are young people who cannot afford a home. What about our kids, and their kids etc. All these people were raising prices out of the reach of hard working people. I'm all for free markets, but they got what was coming to them. So many people were bragging about how much $$$ they were making and how SMART they were. They were smiling at the people who did not already own homes. Now look who's smiling
The housing bubble is a great illustration of the "Gotta have it RIGHT NOW" generation. Young people used to rent for several years and then save up for a "starter home" live in it for several years and then move up to their "dream home" after again saving up funds for a down payment of 20%. Now people want some crazy creative mortgage product and no down payment so they don't have to save up, don't have to be patient, they can get their McMansion at 25 and impress their friends. They want it all and for a few months or years, might have it. The weight of the debt will crush them in the end and they'll be worse off for not being patient and saving. Screw 'em. I for one don't shed one tear for these people, and fully believe they deserve foreclosure for being financial idiots.