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Allen Jeng

Interesting prespective there John + good info! I've been watching the housing market as well! With the prices in the bay area being totally overrated, I'm wondering how much higer will people put up with before calling quits?? Did they not learn the dot com era burst problem? I remember reading some article from bankrate.com and SJ Mercury News saying that a good portion for the ridiculous prices with houses is them "real estate" investors. They buy/bid for the home -- but don't really live in it. They then turn around an sell it in 6 months to a year for profit.

With fed rates increased yet again (the 6th time this year), 30 year fix rate mortgage also going up (currently around 6%), and the fact that housing prices are at crazy heights (ie. would you buy a new condo 1bd/1ba for $480K??? I wouldn't!) -- hopefully, people are getting smarter and not stretch their paycheck beyond what they can afford.

I read an article from SJ Mercury News saying that 50% of the people who bought houses in 2005 took out an interest only loan while 60% of the house buyers took out a piggy-back loan (the loan where you put down less than 20%) ... that means that these people are getting jumbo loans (loans over 300K I think) -- boy ... I hope they know what they're doing because it seems as if they're digging themselves a really deep hole.

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