Is Housing a Commodity?

In the past, according to John Ritchie in his article in the December 2008 Realtor Magazine, people like soldiers returned to their share of the American dream - owning a home, a family and a better life with security. They lived in one home, raised their family, made friends of people around them with the value of their home going up -- it held some value!

Today with less investment or money into a house, homesowners are considering their homes as commodities -- as temporary and can be replaced as their leased cars or computers.

They really don't have money into the house with a 100% financing, rolling in closing costs and with values not escalating, their attitude has changed about their home. They even come to the conclusion that putting good money into a bad decision is not wise. Even a foreclosure does not have the stigma as it did in the past. Many people think the lending market as amoral and predatory, walking away from debt may not seem that wrong.

Pherhaps the Buyers need to bring some equity to the table so they share in the risks and equity stake of homewonership and the lenders must continue to make good loans to qualified buyers. We can see our way out if both happen!