Is there really a housing bubble in the US?

Question

It doesn't take a lot of thought to realize that the housing market is in real trouble. The number of affordable homes has seriously declined over the last 3-4 years. While experts provide a whole lot of statistics and financial advisors love to tell us that there's nothing to worry about, in reality, there is a lot to ponder. Middle and low-income prospective home buyers have been pushed out of the market. This is causing a serious social/psychological/emotional effect on Americans. Americans can no longer afford the "American Dream" because the housing market has abnormally driven up the prices of homes across the country. This negative socio-psychological effect will hurt Americans all across the country. What is the solution, you might ask - A serious correction in housing is required across the country. The correction is already happening but gradually and the housing downturn will continue until the average prospective homebuyer can realistically afford to buy a home in his/her own community. However, the housing downturn isn't occurring fast enough to relieve the build up of psychological and emotional distress that affects most Americans across the country.
Actually - it would be wonderful to see the homebuyer "community" across the country issue a moratorium on buying a home. Just for a month or two - that would really produce a jolt in the much needed housing correction.

Answer 1

Wow you have put a lot of thought into this...here are some other points to consider.
The housing market in some parts of the country, such as Florida are experiencing too many houses on the market and are probably going to see prices decline because of the surplus...
In fact the Northeast is probably one of the few markets still experiencing large increases because of the scarcity of land
There will also be an influx of foreclosures on the market in the next few years due to bad lending practices...increasing the number of homes on the market will cause the prices to drop...

Don't worry so much, if markets are left alone they tend to correct themselves.

Answer 2

Yes, there is a housing bubble. Look back in history and remember the FHA scandals. Where they foreclosed on tons of farmers and then resold the certain farms of their choice. Foreclosured homes is even advertised as a way to make money, flipping houses, and this has made it so that people actually want to do this as well for a living, not a home. Which eliminated those that truly really wanted a place to live and have it be cheap and affordable for their first house. They did the work on it and when time came they needed a bigger house THEN they sold it to pretty much the next person in their same position. I of all people know and understand the housing bubble popping affect. We lost the home we were renting and trying to buy, she wanted more money and more money and as every agreement was denied, then the interest rates sky rocketed so a house that needed much work, the payments almost were as much as a brand new condo. The interest rates ballooned so badly that they were just waiting to pop and explode all over the place. We had no other option than to move and place ourselves into an emotional place that neither of us wish we were. We miss our old home and had to move many miles away just to get away from the distasterous emotions we felt. Psycholigically, indeed, it was roller coaster of emotions and we were desperately upset with the happenings that we carelessly took up an offer that we thought was a good deal and when we used the last of our reserves of money.. the offer changed.

Answer 3

well I don't know about a moratorium on house buying...but I do believe excatly what you said about the psychosocial issues with losing your home. But not only that, I think that this foreclosure situation is so much bigger than people signing contracts they did not understand. I believe that there are a lot of people that knew they might end up in trouble and tried to use credit cards and retirement money to help bridge the financial gap. Now that is depleted they are trying to sell the house, but there are hardly any buyers..so foreclosure is a last resort. All these people that foreclose alot may have medical issues, lost their jobs etc...so it might make it hard to recover financially because the economy overall is not good and jobs are getting harder to find( citicorp anounce they are laying off 15K people). I really think this could be a downward spiral.

Answer 4

My answer is "only when it's blue".

Answer 5

Yes there is!!!!!!