Home Ownership – The American Dream or Nightmare?
One of my favorite analysts, Mark Heschmeyer of CoStar News, authored a thought provoking piece on the reality of the American dream being home ownership by talking to real estate professionals throughout the United States.
This is a good piece and worthy of the few minutes to read it. I think the net of this is that there’s plenty of blame to go around with securitization being way up there on the list. Plenty of blame, however, rests with the borrower using the home as an ATM instead of their castle. We all know folks, probably many of us, did refinance after refinance, pulling cash out every time as perceived valuations rapidly increased until the whole house of cards collapsed. As the months fly by into what should be a strong recovery, it’s becoming apparent that we’re not coming out of it so quickly this time.
Is this going to be our lost decade like Japan in the 90s or even something worse?