posted
i'd like to see the same thing overlayed with heating and gasoline prices.
so, was it the "predatory lenders" loaning money to folks who couldnt pay it back, or were people forced to buy houses they couldnt afford because, well EVERY house is unaffordable?
PCola77
posted
turbo kid, it's somewhat of a chicken/egg argument, but I'd defintely say that the lending practices were a huge boost to home prices, if not an outright cause. Think of it this way:
Why do home prices rise? Because demand exceeds supply. How does demand increase so drastically for so long? Because people are able to access more and more money, more and more easily. If lendign practices has been "normal" over the last 15 years, prices would not have even approached the point that they reached recently, in my opinion. You would not have seen people buying hoses to flip them if they had to put 20% down, or if they couldn't get interest only loans, or 120% of value loans, etc.
quote:Originally posted by turbokid: i'd like to see the same thing overlayed with heating and gasoline prices.
so, was it the "predatory lenders" loaning money to folks who couldnt pay it back, or were people forced to buy houses they couldnt afford because, well EVERY house is unaffordable?
Propertymanager
posted
After a real estate bust, it typically takes 8-10 years for inflation adjusted prices to reach their previous highs. Considering that this was the biggest real estate boom in history, we might expect that the bust will also be prolonged.
Mike
IMAKEMONEY
posted
BUYING OP!!
glassman
posted
quote:Originally posted by turbokid: i'd like to see the same thing overlayed with heating and gasoline prices.
so, was it the "predatory lenders" loaning money to folks who couldnt pay it back, or were people forced to buy houses they couldnt afford because, well EVERY house is unaffordable?
i tend to agree with your theory TK...
why are houses unaffordable? because the money was too easy to get.
college tuitions have become the same.
College tuition still rising Report: Average increase of 6.6 percent forcing students to borrow more
updated 10:16 a.m. CT, Mon., Oct. 22, 2007
Average tuition and fees at four-year public colleges rose 6.6 percent this year, again outstripping increases in financial aid and pushing students into more borrowing. Community colleges once again did the best job keeping the lid on prices.
In-state students at four-year public schools are paying $6,185 this year, up $381 from last year, according to the nonprofit College Board's annual survey of college costs, released Monday. At four-year private colleges, tuition and fees rose 6.3 percent to $23,712.
The published price is not the real price for many students. On average, accounting for grants and tax breaks, full-time students are actually paying $2,577 this year to attend four-year public universities. That's $209 more than last year.
posted