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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: J. P. who wrote (67427)	11/28/2006 5:29:30 PM
From: Tradelite	Read Replies (1) \| Respond to of 306849

<<affordability. It's been missing from the conversation, but I know it's real. As long as rates stay low, the easy financing can keep the issue under wraps.>> What can anyone say about affordability? When homes become unaffordable, the prices go down to meet the market's demand. If loans make homes more affordable, people can buy them and shore up the demand. Same as student loans make college affordable to many people who couldn't attend otherwise. If colleges need more students to fill the classrooms and pay the faculty salaries, the price of an education will fall. And just as not everyone can afford Harvard, not everyone can afford a great house, at least in some areas of the country. That's life. Unless you want some sort of government intervention or divine intervention, of course, to make things different. So far, plenty of money is going toward housing because people have it or can get it, and plenty of people are going to college because they have the tuition money or can get it. By the way, the government has had a long-standing goal of helping people do both--own a home and go to college. Changing the government's mind is like......well, make up your own analogy.