Will we ever learn? Doesn’t look like it.
You’d think what with all that has gone down with the subprime mortgage/credit mess, the real estate industry (or, at least, segments of it) would be in the forefront of a much needed reform movement.
Instead, there seems to be an almost pathological desire to return to “normal” as soon as possible.
While it is certainly true that people all over the country are finding it difficult to obtain mortgages–even people with good credit ratings, hardly a week goes by when I don’t read a newspaper ad or hear a radio commercial that tells would-be home buyers that they can get a mortgage even with rotten credit, the very thing that go us into this ordeal in the first place!
Since most people with bad credit are finding it nearly impossible to get reasonable mortgages, it is baffling about why some places are advertising that they can?
I don’t have a good theory on what they might be up to and would be interested in informed opinions (as opposed to speculation, please) as to why this may be the case?
Regardless, it is discouraging that it took so little time for these potentially abusive practices to resurface.
It is understandable that Americans want to see the light at the end of the tunnel. But, things just aren’t that simple I’m afraid.
When Fannie Mae on Tuesday issued what Reuters calls “reassuring comments about the credit and housing markets” the stock market took notice and went up…investors eager for any bit of positive news they can find.
But, it would be foolish not to take note of the other bit of news Tuesday: a barrel of oil went above $122 for the first time!
Another dose of reality comes by way of Las Vegas. Yes, I said Las Vegas.
According to the New York Times, Vegas is starting to feel the pain caused by the real estate/credit crisis. The city way overbuilt based on an economic model that just doesn’t hold up anymore. The prospects are apparently not very good that the city will quickly rebound,either.
It is more than okay for real estate and potential real estate investors to reach for optimism, so long as they keep their eyes open to what is really going on in the world around them.