- Posted August 9, 2013 by
Joe Crump Middle Class Home Buyer Blues
Joe what is your view of the current state of the economy? "I think the economy is on the rise. I think we are in pretty good shape. We're in better shape than we've been since 2007, when the mortgages froze up." The reasons why this happened varied according to Joe. Deregulation, no qualification loans that people couldn't afford and those loans being sold on Wall Street as something else.
Right now Joe sees the housing market headed in the right direction. There are a lot more homes sold. The latest S&P /Case-Shiller Home Price Index shows a 2.4 percent rise in the 20 biggest cities.
CNBC recently reported, First time Home Buyers Priced Out: Is that a concern For Housing?, another Op-Ed piece, in Yahoo News The marginalization of first time, middle class home buyers.
In the CNBC story. First time home buyers make up 40% and 45% of all home buyers, but in June, they made up just 29%, according to the realtors. "..why they’re getting priced out. and because home prices are rising at the same time interest rates are rising, it's a double whammy against the first-time home buyer."
In the Yahoo editorial, Real estate attorney Roy Oppenheim stated, "Even after years of declining home prices and record-low mortgage rates, middle-class households are finding it increasingly difficult to live the American dream."
What are your thoughts on these headlines?
"Both of these headlines, I believe are very accurate. And the reason that their accurate, is because of the banks and the need these days for higher qualification levels for buying a property. Not just in income, but in credit scores. So it makes it very difficult for people to buy these properties."