Canaries in the Coalmine of Housing
Canaries in the Coalmine tell a different story this time. As this Blog points out, spending is down, savings is down, debt is way up, and yet housing values and demand are still on the rise or holding in the majority of markets. We see it in the poor credit quality of the loans for first time buyers stretching to qualify for the 10th listing they have bid on. We also see fraud on the rise as desperate times spur desperate decisions... We don't need free government money to "close the gap" but more creative housing solutions adding smaller convenient and efficient units for starter homes and trade down buyers are needed desperately. Solving for local zoning blocks and smart modular structures is the best use of government power to fix inventory. Add in the need for lifetime (not one time homebuyer classes) professional financial counseling for underserved markets and we can turn the corner. Somehow I'm not seeing these issues come across any ones plans in an election year...but if they listened to their children of homebuying age maybe they would begin to care.