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We need a housing bubble or else home prices would collapse

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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Latest Comments

we`ve back to mortgages with 100% financing and refinancing at 95% - Mr.Clumpus | Feb 5, 2013 11:39 AM ET Just recently Diana was gloom and doom about housing. Now we`re in a bubble. LOL

j_m_h | Feb 5, 2013 11:40 AM ET One of the signs of a new bubble ... - by Mort2482

Rushing Into a Mortgage Can Be Costly - thinkaboutit | Jan 18, 2013 04:04 PM ET Unless you are going to live in the house for 30 years, I do not see the benefit to paying points.

gruntspeak | Jan 18, 2013 04:46 PM ET The ol... - by Bone822

house prices are up doesn`t mean that sales are up - SnowByrd51 | Feb 26, 2013 09:38 AM ET Hello!! Just because prices are up doesn`t mean that sales are up!! Could it be that the distressed housing market has already been bought up by investors. In en... - by Lou654

I love my realtor - Claud_Zilla Luc S March 21, 2013
Same here. I dig my realtor. He helped my husband and I buy, and then helped me when I bought on my own after the divorce. He steered me away from... - by Rhoda

Housing Starts Fall as Northeast Feels Effects of Sandy - go@PTSC | Dec 19, 2012 08:49 AM ET Do you know how a volcano erupts? It builds and builds pressure until an EVENT happens. I see a parallel to that with PTSC. A lot of good news on legal issues. Too ... - by NYC54ZP



We need a housing bubble or else home prices would collapse

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