Individuals who sold their homes and decided settle down for renting, are enjoying their massive profits from the sale. There were many investors and individuals who right away knew the housing blowup was coming, how did so many people miss it?
Even the Fed Chairman Alan Greenspan made a comment about the housing market disaster stating “Everybody missed it”. Is this really true, did everyone miss it? This was not the case for many investors, brokers and homeowners who sold their home right away when their home, which they purchased for $200,000, was appraised for well over $450,000. Once sold the homeowners would have profited a very nice sum of money to hang on to until prices dropped again and they would be able to purchase not one, but multiple properties.
Not such a bad idea, they can live in one and rent out the other for an additional source of income. This is only a suggestion in mind; others got into other investments or simply help on to that great lump sum of money and were waiting for different opportunities to come their way.
How did regulators, Federal Reserve and academia miss it? At the time when a small one bedroom, one bath house not more than 1,200 square feet and in a bad location had a listing price of over $350,000, this should have definitely alarmed the buyer. Those who kept their eyes open and minds alert are enjoying their financial gains today. Most of those individuals who fell into the market trap are now underwater on their mortgages or going through a process of short sale.
Contributor, designer & admin for JohnHart Gazette.
