Higher home prices without higher wages makes housing unaffordable and only benefits existing homeowners and the bankers they owe money. Repost from OC Housing News 2011-2016 What good came from the recent house price reflation rally? Did it stimulate the economy? No. Did it put millions of unemployed construction workers back to work. No. Did it stimulate housing sales? No. politicians and the federal reserve promised economic expansion and acceleration; however, so far these great benefits from higher home prices remain elusive. So why isn’t the economy improving with higher house prices? The increase in home prices came with no increase in wages, so now houses everywhere are more expensive, and average Americans need to spend more of their income on…[READ MORE]

Large down payments shut many borrowers out of the housing market — many unreliable ones -- which is why large down payments make housing so stable. It's also why many rally against it. Repost from OC Housing News 2011-2016 Down payments form the bedrock of the housing market. Large down payments serve the interests of homeowners and politicians by preserving homeownership, lowering volatility in the market, and reducing the risk to our financial system. The primary people who oppose large down payments profit from short-term boosts in transaction volumes and higher prices, realtors and originate-to-sell lenders. Left-wing housing advocates also view large down payments as a barrier to putting unqualified borrowers into houses -- of course, they fail to acknowledge the…[READ MORE]

People who live in houses they don’t pay for are viewed as folk heroes by some and contemptible deadbeats by others. Repost from OC Housing News 2011-2016 Have you noticed that most of the human interest stories from the housing bubble have no heroes? The housing bust has brought out the worst in mankind. Every party involved seeks to avoid any financial responsibility while simultaneously looking for ways to game the system to their advantage. The cast of characters includes lenders, realtors, delinquent mortgage squatters, holdover tenants, mortgage brokers, basically anyone involved with real estate. Are delinquent mortgage squatters heroes fighting the system or deadbeats gaming the system? These people quit paying their mortgages, many quit paying several years ago,…[READ MORE]

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