Cincinnatus BLOG *** Political Commentary - Social Commentary

  On average home prices have fallen 32.2% since they hit their peak in the second quarter of 2006. In super housing bubble markets like Phoenix and Las Vegas home prices have plummeted by 50% from their all time highs. At the risk of being labeled a cock-eyed optimist I will predict  - The end is near! What makes me so optimistic? Traditionally home prices have tracked inflation. In fact, in the last 50 years home prices have appreciated approximately 1% faster than inflation. There is an internal logic to this trend. If housing prices appreciate at a rate that is appreciably faster than income, within a decade we would be unable to purchase our own homes. And that is exactly what has happened. Fueled by political pressure from the left and… Continue reading | 2 Comments

  The 50 million American families who work hard and pay their mortgage promptly each month may view this current $275 billion mortgage-refinancing scheme as inherently unfair. Your chances of winning this lottery are greatly enhanced, if you made no down payment, you bought more house than you could afford and defaulted on your payments. If you foolishly worked hard and paid all your bills on time your chance of winning is practically zero.   In 2008 there were approximately 2.5 million foreclosures out of the 55 million mortgages outstanding, a rate of about 4.5% or 25% of the 10 millions homes that are "underwater" - i.e. the house is worth less than the outstanding mortgage. It is reasonable to assume that the ability to make monthly payments is the… Continue reading | 3 Comments