I read a frightening article this morning in the San Francisco Chronicle about mortage trends. For you non-link-followers, allow me to synopsize.
- More than 21 percent of buyers last year took out mortgages with no down payment, soaring from just 4.5 percent in 2000...
- The number of homes sold in the Bay Area dropped 19 percent last year compared with 2005 and the median home price rose just 2.9 percent to $736,820 after years of record gains.
Later in the article, Steven Levey, Director of the Center for Continuing Study of the California Economy says:
"People are buying above their income level, financing with debt and hoping," Levy said. "They lucked out before. This means that any price downturn is going to put a much greater number of people under water.
And for that sort of analysis, we need an expert? The American Dream has quickly become the American Delusion. We are borrowing more, owning less, and crazy enough to think the system will work long term.
We made a committment a few years back to get out of debt. We've scraped, saved, pinched and tweaked (and been amazingly blessed by some of God's dear friends) and are now out of the hole with the exception of the mortage. Even so, Kelsey and I lay awake and night and dream...could we build an inexpensive house out of shipping containers?
You think we're kidding. That's what I like about you. You always give us the benefit of the doubt. How kind. And clueless.
Video here.Anyone else interested?
Bob Villa tells us how here. Oh no. This will inspire Kelsey that we can do this ourselves. This weekend. And still make it to EGS.
Purchase here. Note: Gotta be an ESL company.