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POPSHousehold Wealth Plunged In ‘08, Reversing Rise Borrowing for second homes accounts for part of the large increase in debt over the last five years. This is something that is not being discussed or factored into the current housing situation. An enormous amount of second homes are going into foreclosure and even more are on the market for sale. This overhang in the housing market is likely to continue for a long time. Is anyone in the government discussing supply and demand as they look for a quick fix for the housing crisis? The drop in the stock market is hurting the newly retired and really weighing on Baby Boomers.
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POPSThe foreclosure 'discount' This is as good an example of the nuttiness in housing that you will ever see. $640,000 for a 2 Bed, 1 Bath, 1,054 Sq. Ft. house, on a 5,000 sq ft. lot built in 1951.
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POPSThe Housing Bubble The chart on House-Price-to-Rental Ratio is one of the best illustrations I have seen of the current housing bubble. In many places it is now substantially cheaper to rent then own. In fact, in many places the cost of ownership is more then 150 percent of the cost of renting after calculating in the tax benefits. Comments?