There is a housing bubble in the country and the realtors that make money off of high housing prices say there is not a bubble. The banks that are not making a lot of money off of the interest rates are afraid there might be a bubble, but they won’t bridle because six percent is six percent, and if the mortgages default there is real property attached. There is a lot more than money invested here.
A very small percent of the realtors are actually making sales in a tight housing market. Prices only go up when there is short supply. So there are a lot of realty people dreaming. And of course, housing ownership is a classic dream, which realtors and banks exploit for profit by allowing people to enter mortgage contracts they are unable to reasonably fulfill. And after that, dreaming of getting twice what you paid for a house would be a dream indeed!
And yes the banking corporations are dreaming that the numbers of the national averages will be convincing enough to the people and corporations in very populous areas that they won’t notice the local bubbles, Alan’s froth. Because in real estate investment, where the asset is as fixed as fixed can be, bubbles are only local, but the effect of the dream is national.
And there goes the American dream, sometimes awake and sometimes asleep, but always kept to the edges of awareness. Do not be fooled, do not be foolish, and always work hard… But don’t forget your dreams. Take a look, and sometimes you may not even really want what you dream about, not nightmares necessarily, but all the odd distortions of the sublimely unfocused mind can be truly ridiculous. And the way this focus works is that even the waking, practical mind is distorted when operating.
Is there any connection among the bank employees, the school taxes, the assessors, the commission rates, the resale value, reseller, and buyer? To view that there is not is either to dream or to reason tortuously.