Everyone knew that interest rates were really low, and that the "interest only" mortgage structure was risky unless you expected to see a marked increase in your income - but people still decided to prospect on property. I was the beneficiary of the low rates for a while and exited the market earlier than anticipated.
To tell the truth, I am glad that the housing prices have chilled out while I finish school and get ready to find my home. It is completely likely that in a year or two if I buy property, I could buy some 5 year old construction previously owned by someone who couldn't afford it.
I don't feel that bad for people who made risky decisions, but I do feel bad for people who were swindled like this:
"In Atlanta, entire neighborhoods and condominium developments, especially those in affluent areas, were hit by organized fraud rings. Initially, these schemes pumped up housing values for everyone as artificially high appraisals helped the swindlers get inflated loans. Legitimate home buyers rushed in to get a piece of what they thought was a soaring real estate market. Now as the fraud is being exposed, their home values are taking a hit.
As more of these cases come to light around the nation, the question is: How much did an epidemic of fraud contribute to the frenzied housing market of recent years?"
http://www.washingtonpost.com/wp-dyn/content/article/2007/04/09/AR2007040901463.html
No comments:
Post a Comment