Archive for June, 2008

Will the suburbs of today be the ghettos of tomorrow as rows and rows of mostly identical homes that have remained vacant for months are subdivided into rooming houses?  While current suburbia residents’ move closer to the city to save on fuel and to cut their commute time, less affluent people are moving to the suburbs where housing has become more affordable.  The opposite is exactly what happened to the cities starting in the 50s as America’s love affair with the car drove people from the city to the suburbs.  Perhaps this is just the beginning of that reversal – perhaps the love affair is coming to an end…

You’ll have to look deep into the belly of the Wall Street Journal’s online archive to find this article but this might be the start of the press believing the housing crisis is over. http://online.wsj.com/article/SB121003604494869449.html

Market trends are driven partially by psychology, and when we think the crisis is over, it will be. This article cites some interesting statistics that are hard to argue with. Written in early May it didn’t take into account the trickle down effect of high oil prices. When the fear leaves the market, the buyers will return.