2 of 18

Yes

Write now Article Tools

Page 2 of 2

ago!

My problem is that the government stepped in to save the day. Luckily, they let some amount of normalcy come to the market before they acted. No one wants to see a family lose their home; but the American dream is going the way of the dinosaur as fewer and fewer families can afford to buy a home! I am completely for a free market, but a sad time has come to the U.S. when so many, especially those at the bottom of the food chain, will never realize their dream of homeownership. Falling home prices offered those would-be homeowners a glimpse of hope.

By pumping money into the monetary system, the Fed forces interest rates down; supposedly, at least. Of late, interest rates remained high for home-buyers, even as the Fed Funds Rate was dropped lower and lower. Here's where it gets good; why didn't home-loan interest rates drop immediately? Because the banks were getting hit hard by defaults on home loans. So even as the Fed lowered the Fed Funds and Discount rates, the banks wouldn't make loans; so supply diminished even as demand for loans grew. Thus, high home-loan rates remained high. Home prices dropped, but it wasn't helping the home-loan borrower because they couldn't GET a loan. Just recently, within the past month, finally loan rates began to drop. Why? Because the Fed pumped cheap money into the market to bail out the banks.

Whew! So, do I think home values will rise again? Will the real estate market rebound? Yes. Do I think this is a good thing? You tell me; is it a good thing when a working couple with two incomes will never be able to afford a home...even though their combined income is well over a hundred grand? Personally, I don't think so.

Warren Buffet, who always has a comment to make on everything, recently said in a CNBC interview, that "we are better off than our parents are, and our children are going to do better, (financially) than we will do. I almost put my foot through the TV set! Mr. Buffet, you may be the "Oracle of Omaha" to some folks, but you need to get your head out of the Nebraska corn fields and come to speak with the thirty-somethings here in California, up in Washington state, out in New York or down in Florida.

At twenty-two years old, we owned our own home. Our own children have almost no hope of doing so, even as they enter their mid-thirties! How can one even begin to think that our children will be just fine? Waiting for your parents to die should not be your only hope of ever buying a home. And the way that things are going in Congress, our estate may not even pass to our children; instead, we can invade some other rat-hole, sand flea country with our own hard-earned money! But Buffet, among others, advocates higher tax rates, and, estate taxes.

For some reason, everyone thinks home prices are too low now! Please! I think that six hundred thousand dollars for a home in the ghetto is quite high enough. And if our kids are expected to live in the ghetto, how does that make them better-off than our generation?

As a friend recently said, "there's nothing more scary than a rich Democrat." They have no clue about how other people live, how hard our kids have to work to make rent, much less make a house-payment. But, make no mistake; the real estate prices WILL rebound soon. The powers that be will see to it, even if they have to artificially inflate the market.

Learn more about this author, Taylor Shay.
Click here to send this author comments or questions.

• << previous page
• 1
• 2

Add your voice

Know something about Will the real estate market rebound soon??
We want to hear your view. Write now!