MMMPARSLEY1

Where Is That Mythical Housing Bottom?

One caveat to GoMyLittleSheep's argument is that if you paid more for your house, you are also making higher monthly payments, thus making you more dependent on the income-stream that you had when you applied for the mortgage.

For many individuals, because they paid such a steep price for their house, they can not afford even merely one small financial setback because it will cause them to fall behind on their pay schedule.

In this environment, it's hard for people invest for the next 30 years and buy up all the excess inventory (which as of now is at a record high, ~13 months supply), causing the potential problem of housing staying at low prices due to large supply and, at best, average demand while more and more of those who suffer a financial setback are forced to sell their home due to foreclosure.