Just spoke with a friend who bought a house in the suburbs. The house was fairly cheap and discounted, the interest rate was 5% and only a 3% down payment was needed for closing. It’s out in one of these planned neighborhoods and the builder is still building houses, and they must be getting desperate because the builder covered the closing costs and even threw in a plasma TV. Whether the TV was refurbished from a recent foreclosure, I can’t tell.
Current Homeowners in these sprawling burbs aren’t doing so hot. I think it depends on where you are, however. Here in Texas, a home in the burbs cost between 100-190K.The top end of that is closer to 150K now. In a sprawling burb an hour away from the outskirts of a city in California, the house price was close to 400K, and is now close to half that. Because a large part of the media industry belongs in California, we are led to believe that society, government, and culture there is far more enlightened than it is here in Texas. Part of the reason those house prices were so high was because zoning regulations in California cities are so strict that it creates artificial scarcity, inflating the prices sky high. Not only does this encourage homelessness, the cities create a market for homelessness by subsidizing it. Meanwhile, here in Texas the homelessness rate is nonexistent…I’ve lived in Houston for 1 year and have seen the same five guys panhandling near the mental hospital. There are some shoddy houses in some shoddy neighborhoods, you betcha, but no one here acts all high and mighty about how here in Houston we have plenty of cheap housing. Even if they did, the industry here is oil and health care, both evil according to the left, and not the media, banking, or lawyering, like on the coasts. Since the coasts control the media, the coasts are enlightened and here in the South and Midwest we just don’t get it. Funny how that works.