Reply #6: When the bubble bursts here in So. Cal [View All]

[LibDemAlways]

things are going to get ugly for people who've bought in the past couple of years. Prices have gone through the roof - $600K and up in my neighborhood for 25-year-old small tract homes that wouldn't have sold for $350 three years ago. And people are mortgaged to the hilt. A home like mine sold for full asking price of $599 a year ago and the people took out a first and second - no down. They - and many like them - are on the verge of losing a bundle.

The low interest rates have lured many people into making similar bad investments they will regret bigtime when rates rise, prices fall, and they are left holding the bag.