As of July, 2004
Interest rates are trending up at last! Is this the
first warning for real estate investors?
House prices rose nearly 40% in San Diego County last
year.
The median house in California has risen to $453,000.
You need a minimum income over $100,000 to afford it.
But only 20% of Californians have household incomes
greater than $100,000.
Nationally there are only 138 million people who have
jobs! And about one of out six of them, 17%, works
directly for the government!
The annualized householder debt increase comes to
$7,304.35 for every last worker in the country,
including government workers. High debt and higher
interest rates mean fewer people will be able to buy
homes.
Houses can't go up much more - people of limited means
have to be able to afford them. Either inflation or
deflation, will force prices down. Inflation leads to
higher interest rates, which bar people from buying.
Deflation puts people out of work, so they can no
longer afford to buy houses.
In the U.S. the household sector increased debt at a
record annualized $1.008 trillion.
Total Mortgage debt increased by $251.3 billion ($1.01
trillion annualized), or 10.7%, to $9.618 trillion.
Total Mortgage debt was up $1.04 trillion over the
past year (12.1%), with growth of 24% over two years
and 83% over the past 25 quarters (since the beginning
of 1998).
Total Mortgage debt has increased from 65% to 85% of
GDP.
The game is changing.
Are you ready to get into the game? If so Click Here to find out how to play!
Click here to return.
