We need a housing bubble or else home prices would collapse

Bureaucrat | Feb 8, 2013 12:04 PM ET In my area, rents are still very soft, maximus34. Many, many folks who move these days are being forced to rent their current homes very cheaply because they are underwater and can`t cough up enough cash to retire their mortgage with a home sale. Prices are roughly 40% below the 2006 peak and not many folks can take a 40% loss on their property, therefore they are renting their homes out just to generate some cash flow. I am in the process of selling my old house and will take a $56K loss on the property. As I don`t have a mortgage, selling at a loss is better than hanging on to a high tax, insurance and maintenance liability.

Leopold31 | Feb 8, 2013 02:53 PM ET So prices in SW Florida are OK now due to Baby Boomers entering retirement. We`ve seen how this population bulge has affected many parts of the economy from housing, to mini-van purchases, and so forth. But what happens when that winds down and you have more houses available than people moving in? Just like everything else we`ve seen, when the baby boomer`s move on, they leave economic devastation in the vacuum they create. What happens when baby boomer retirement no longer drives your real estate prices AND the Fed no longer pumps a hundred billion bucks a month into the market? Yikes.

tarandfeathers | Feb 8, 2013 09:52 PM ET We need a housing bubble or else home prices would collapse. You could byuy a house for a song! Whr do you think the Bernanke is not picking up interest rates? Guess people!

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We need a housing bubble or else home prices would collapse

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