HousesApril 27, 2011 at 3:29 AM | Posted in Economics | 2 Comments
Tags: David Streitfeld, NY Times
In a recent article by in the NY Times, Builders of New Homes Seeing No Sign of Recovery, David Streitfeld details the lengths that builders are taking to sell houses; one is throwing in a car with the deal. Everyone knows that the last housing boom was built on the shifting sands of bad mortgages but what will the next boom be built on?
That housing prices kept going up and up gave many of us a false sense of our own intelligence. In Long Island in 1986 we sold a house for almost double what we paid just three years before. We weren’t flipping as we were moving to Chicago for a new job but we knew just when to buy — and when to sell. Now, our move was pure circumstance but we took credit anyway.
The first step to the next boom — and bust — is when we think of a house as an investment and not a place to live, hopefully, for a long time. Who, really, can get comfortable in an investment “instrument”?