[nmh]

This is NOT good news:

23 percent of all American houses bought last year were for investment and in Miami, one speculation hot spot, 70% of condo buyers are investors/speculators.

Last year, 42 percent of America's first-time buyers – and 25 percent of all buyers – put no money down.

In California, 60 percent of all new mortgages this year are interest-only or negative-amortization.

[GodGunsGuts]

Why do you have to be so negative? Don't you know that the time to take out an ARM and buy real estate is now!

[driftdiver]

The difference between the housing market and the stock market is a big thing these doomsayers miss.

We can live without owning stock.

It gets really uncomfortable living without a house. And that is why they are full of it.

[DontBelieveAugPolls]

Miami is a nortriously erratic market.

I remember in 1978-80 Condos in MIA going for $100,000+. By 1982 those same units were selling for $65,000.....been there before.

[EGPWS]

In California,

Gee.

The rest of the country is apples, California is oranges.

[fella]

This is NOT good news:

Depends on if your in debt up to your eye-teeth with ARM's and such or debt free.

[JasonC]

Purchases last year were 7 million, there are 111 million households in the US. 25% of 7 million is less than 2 million. The other 109 million bought a long time ago, or rent, or put money down, etc. CA is maybe 10% of the country, so the figures there are hundreds of thousands, not even millions. And why are negative amortization loans - by definition to people with plenty of equity already, taking some of it out - lumped in with first time home buyers etc? They are a tool by which people who bought long before the price spike cash out part of the giant increase in equity they got over the last 5 years.

The patsies in the piece are the people who left their money sitting in money markets or bonds as they yielded 1-4%, in a currency that fell in real terms.