housing hope

housing hope
I hope the housing market crashes super bad so I can finally afford to buy a home. How about you?

Holy crap. Things got WAY out of control here in Florida. Wages stayed flat for years while the housing market skyrocketed here. The only folks buying homes (and there were alot) were folks that brought alot of money from up north after they sold their home in New York or wherever or speculators would invest heavily hoping to make a quick buck. Actually, I hope the people that the speculators that drove the price up really suffer financially. According to major newspapers here in Florida, this may even trigger a recession.
What I am really getting at here is that I hope for a market correction.

The pendulum is definitely swinging. We went through this back in the late 70's and early 80's. But this new generation has not learn from past mistakes. I read some misguided soul quoting the breakingbubble.com a few times. They blame the Realtors, Washington and everybody else under the sun except their own ignorance and stupidity. They deserve every thing coming to them. let me share with you why.

A home is not an investment instrument and definitely not a speculative instrument. Years back, we pay 10% interest rate on our mortgages. However, when interest rates fell to record low of 3%, 4% 5%, one can afford twice the home for the same payment. So everyone traded up. Why not and nothing wrong with it. Hpwever, what went wrong was because everyone got greedy are started buying homes or even "investment" houses to flip and things went on a rampage. None of these people have any kind of investment training or experience. Worse, they drove prices higher and a lot faster than earnings. Over night, all these how to get rich quick real estate courses sprung up. When interest rates goes up, payments just got higher and real estate prices come down. This is the law of real estate. The result is quite predictable. There will be a correction. I am hoping for a soft landing instead of a crash. Just stay put and don't get into the "me too" kind of a deal right now.