Because of the messed up US housing market there’s a huge glut of houses on which the owners are in technical default but the bank hasn’t yet seized or sold. A clearing of this glut would greatly increase the supply of houses and potentially cause their prices to plummet in certain areas. The housing market is in an extremely untypical situation and it’s dangerous to rely on past performance to predict what’s going to happen in the future. Plus, the enormous future US federal government debt might cause Congress to eliminate the mortgage interest tax deduction and this would devastate the housing market.
there’s a huge glut of houses on which the owners are in technical default but the bank hasn’t yet seized or sold.
That’s not even the worst of it: a sizable part of that glut consists of houses which, legally, no one owns due to banks cutting corners with the paperwork. This video, The next housing shock, describes the situation. The market is in an extraordinarily warped state right now.
Because of the messed up US housing market there’s a huge glut of houses on which the owners are in technical default but the bank hasn’t yet seized or sold. A clearing of this glut would greatly increase the supply of houses and potentially cause their prices to plummet in certain areas. The housing market is in an extremely untypical situation and it’s dangerous to rely on past performance to predict what’s going to happen in the future. Plus, the enormous future US federal government debt might cause Congress to eliminate the mortgage interest tax deduction and this would devastate the housing market.
That’s not even the worst of it: a sizable part of that glut consists of houses which, legally, no one owns due to banks cutting corners with the paperwork. This video, The next housing shock, describes the situation. The market is in an extraordinarily warped state right now.
Good point. I hadn’t considered that that whole mess hasn’t shaken out yet.