Pedicab Man

There is plenty of money available to buy homes!!!! If you have good credit, a 10% down payment and the house cost is no more than 2.5 times your annual salary.  In other words it's back to the old business model.  The problem is people aren't making enough money to afford homes.  This is  due to the hyper-inflation of home costs over the last 10 years caused by creative financing. The affordability gap widened as house price when up10-15% per year and salaries only went up 5-6%.  In Charleston the mean household income in 2007 was $46k and the mean house cost was $365K. You already know what happened.... some folks were buying houses they couldn't afford using loans  that did not have a chance of being paid back.   Make no mistake about it, these excessive loans were a major cause of the hyper-inflation.  Now it's time to get back to the real world of supply and demand.  No one want to hear this but that 2007 mean housing cost of $365K is going to have to get down to the $175K range before most families will start qualifying for loans again.   The only thing that will stop this cycle is the if the Federal Government throws enough money into housing and the bad loan practises are continued.  AND..why wouldn't the feds get involved?  AMERICANS ARE PERFECTLY HAPPY TO STAND AROUND WHILE THE GOVERNMENT BANKRUPTS OUR CHILDREN.