The answer is no, and for more than one reason.
The first reason deals with economic theory. Economic cycles – or recessions and non-recession periods – happen. Part of this economic downturn is due to the down turn in the housing market. Especially on the coasts, housing prices were inflated. Two income families were causing the prices of homes to rise, because two income families can afford to pay more for a home than a single income family. Housing prices have since dropped. This is due, in part, to the number of defaults on loans. Because of the high cost of housing, people who wanted to buy homes but were unable to afford one, had to take out risky loans that financed the whole house (instead of the traditional down-payment method). When these people defaulted on their loans because they couldn’t pay them anymore, they flooded the market with housing for sale. Which in turn dropped the price. New houses tend to cost more, so as housing prices have dropped, builders have stopped building. All of this is causing a recession-like cycle in America. It is nothing to worry about, economies always go through cycles.… >>> MORE
