Why the Housing Bubble Is Popping, In 50 Words Or Less
Author: Nick
Category: Money
Topics: real estate
This Fortune article found via the Housing Bubble Blog will tell you in a few hundred words why housing prices are going to drop (if they’re not already). Allow me to tell you why housing prices are going to drop in fifty words or less.
Housing prices skyrocket. Property taxes skyrocket. Interest rates skyrocket. Your pay doesn’t skyrocket. You need a house. That guy selling a house can’t control taxes or interest rates. You can’t afford that house. To sell you the house, that guy must drop the price. Now you can afford the house.
Ooh, fifty words exactly. How grand!
And sure, it’s a little more complicated than that, but the reason for the bursting housing bubble is not some complicated economic formula that depends on per capita gross domestic gobbledygook. It depends on you, and you’re the one with the money to buy a house. And when you and everyone around you stops being able to afford a house, that house ain’t gettin’ lived in unless it costs less.
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Weekly Roundup - 05/05/06…
Before I get rolling on this week’s roundup, I just wanted to remind y’all about the MoneyBlogNetwork Forums, which are fast becoming a treasure trove of information for personal finance bloggers of all shapes and sizes. Please stop by and …
Trackback by fivecentnickel.com — May 4, 2006 @ 10:28 pm
[...] Also be sure to catch the Carnival of the Capitalists hosted by Harshly Mellow (mmm, marshly mallows…) which points to my super-short take on the bursting housing bubble. Harshly Mellow is also the home of the original carnival, the Carnival of the Vanities, which Punny Money will have the honor of hosting on June 7th. [...]
Pingback by Punny Money — May 8, 2006 @ 9:23 pm
[...] I’ve talked extensively (and less extensively) about the housing bubble before, but now it’s time to open things up to you folks. With interest rates rising, demand cooling, and housing inventory climbing with each passing day, what are your thoughts on the likelihood of a housing market crash? [...]
Pingback by Punny Poll #7: Are We in For a Housing Crash? | Punny Money — July 10, 2006 @ 10:26 pm
[...] I like explanations of complicated things kept short. The shorter an explanation is, the fewer words there are to be confused by. In May I talked about why the housing bubble is popping in 50 words, so let’s see if I can give the same mini-explanation for another topic which often confuses people: the Federal Reserve Fund’s interest rate and what it means to you. [...]
Pingback by The Fed Rate and What It Means to You, In 50 Words or Less | Punny Money — July 31, 2006 @ 4:55 pm