When in debt – Buy More!

This afternoon as I was having a quick lunch break, I happened to glance through the office copy of the Tulsa World for April 12,2008. My routine is to look quickly through the paper and see if any article catches my eye. Usually, I just skip to the comics because I already know what the Tulsa World’s view is on most of the things I care about.

Today, I was amazed. There is a new section to our already well-rounded, non-biased, enlightened daily rag. WORLD OF HOMES jumped off the page straight to my eyes. I was caught by the tagline and because I have been trying to sell a small modest home and have been for months. The tagline reads: “Homes for sale – New construction trends – Building and buying topics – Home improvement”. Curious, I looked through the section. The average home was well over $200,000, with only a smattering in the $20,000 (for a lot or mobile) to $100,000 range. Apparently the Tulsa World knows that we as a buying public need to purchase more luxury homes. After all, they are just reporting what everyone else is:

Mortgage Crisis Spreads Past Subprime Loans
NYtimes.com
Published: February 12, 2008

Subprime Mortgage Problems: A Quick Tour Through the Rubble
by Ronald D. Utt, Ph.D.
heritage.org (The Heritage Foundation)
April 3, 2008

Fedspeak Highlights: Fisher on the Housing Crisis’s Roots
blogs.wsj.com (Wall Street Journal Blogs)
April 9, 2008, 1:52 pm

Mortgage crisis: Home loans are harder to get
Usatoday.com
date gathered: April 14,2008

Thank you Tulsa World for making a low-cost, high-advertisement reminder that just because everyone is going broke from poor home-buying judgment doesn’t mean we should be responsible! So, go out and buy a new McMansion everyone, maybe then we could re-live the good ol’ days of the Great Depression again.

BTW– Here are some national stats from HUD, just to get my point across, even further.(http://www.huduser.org/periodicals/ushmc/winter07_1/USHMC_q4_07_2.pdf)

NATIONAL DATA FROM 4TH QUARTER OF 2007:

FHA Applications – Up 95% from 4th quarter 2006

Refinancing – Up 70% from 4th quarter 2006

All Loans entering foreclosure – Up 20% from the 4th quarter 2006
Breakout of loans in foreclosure:
Conventional Subprime Loans – Up 20% from the 4th quarter 2006
Conventional Subprime ARMs – Up 42% from the 4th quarter 2006

Loans 90 days Past Due:
All Loans – Up 34% from the 4th quarter 2006
Conventional Subprime Loans – Up 56% from the 4th quarter 2006
Conventional Subprime ARMs – Up 76% from the 4th quarter 2006

Foreclosures Started:
All Loans – Up 70% from the 4th quarter 2006
Conventional Subprime Loans – Up 71% from the 4th quarter 2006
Conventional Subprime ARMs – Up 116% from the 4th quarter 2006

Homeowner Vacancy Rate: Up 4% from the 4th quater 2006

Home Sales:
New Homes Sold: Down 34% from the 4th quarter 2006
New Homes for Sale: Down 7% from the 4th quarter 2006
Existing Homes Sold: Down 21% from the 4th quarter 2006

======================================

I rest my case.

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