Wednesday, June 28, 2006

'People Wanted to Believe' in a 'False Economy'

The return of common sense:

"You just can't have a median income of $58,000 to $60,000 and live in a $400,000 house," said David Levin, a Delray Beach real estate consultant. "It just doesn't work. You don't need a Ph.D. to understand that $2 will not allow you to afford $3." But, he added, "people wanted to believe."

Approval of Kern County's 2006-2007 budget is still two months away, but county departments are already filling out their wish lists...Supervisor Jon McQuiston said he doesn't want to spend any money on ongoing costs. Tax money is coming in from new development, he said, but he doesn't trust that money to keep coming in. "We've seen tremendous growth in the real estate market that is somewhat softening," he said. He called the temporary revenue from that market a "false economy."


Anonymous said...

hey i'll give you all cash,if you'll take a postdated check on a closed account.

Wiley said...

People didn't want to believe they could afford something they should have known they couldn't. That's what the RE industry wants us all to think.

Most people were told by ever expert the RE industry could find, that if the buyer didn't get in NOW they would forever be living in an apartment. Buyers weren't adding an income equation in their heads--there was no time for that. Remember? Agents were selling houses within hours of being placed on the market. Mortgage loan officers were handing out loans to anyone who had a SS#. It was an illogical mess--a mess that us as the taxpayers will have to clean up. If the RE industry would just clean itself up the tax payers wouldn't have to.

Selfish retards!!!

Anonymous said...

Just like that retard in the White House.

Gee Dick what does this here deficit mean to you?

drwende said...

I love this "people wanted to believe" line. Almost every news source and pundit was spouting "property values in California only go up!" until five minutes after property values stopped going up.

If you didn't want to believe, the barrage of media telling you how stupid you were was incredible...

Thank gawd I'm stubborn in my stupidity. I'm still reeling from discovering that, had we bought where and when we were advised (by a professional) to buy, we would have doubled our monthly expenses AND lost an additional $44,000 as the house declined in value over the past year. I feel like we narrowly avoided a brutal mugging.