Who's Going to Buy My House... part 3
One of my first posts on this website asked the question; Who's going to buy my house?
Basically if my income hadn't gone up in ten years, and all I saw in the real world were closing engineering and manufacturing jobs, replaced by new target and walmart jobs, I was wondering who would buy my house. Especially at double the price I had paid for it. Actually I was more wondering who was buying all these expensive houses around me. At the time I had no idea that ninja loans existed and if you had told me, I would not have believed it. At least not right away.
In the responses TMFBent gave me my first clue about what was coming. It was not until I found Calculated Risk that I really began to understand.
Having run out of qualified homebuyers, rather than stop building, a way was found to create more home debtors. What this meant was selling to unqualified buyers. Once the unqualified buyers ran out, well, you all know what happened.
In the desperate search for the recovery of some lost cash, the prices of homes have been falling. The question now is how far will they fall. Apparently even with the support of 90% Government money, investors still do not see value in these structures.
So what are those three bedroom, walk in closet, finely appointed, marbled bath and counter, condos worth today? In the NY City suburb of Crown Heights?
Less than you might think.