Agree with every thing you say. 70% of Americans live paycheck to paycheck.- Scary
Also, I think I read 35-40% of all homes sold now are purchased by people as 2nd homes or investment properties (flipping). Even scarier
Once these people see that the carrying costs become burdensome to the point of equaling or exceeding the appreciation they are likely to get, they will have second thoughts.
The worst part about this is that many local people have been priced out of the market in the places they grew up to people who don't even use the house that much and don't spend that much money in the local economy.
You are partly correct. The National Association of Realtors has reported that 36 percent of homes sold in 2004 were second homes. Of those, 64 percent were for investment purposes."
Ok, now let's look at the facts from that report:
36% of homes sold were for second homes. This means that 64% were NOT second homes but single home purchases. Then it says that of the 36% that are second home purchases, 64% of those are for investment purposes. How is this bad? 64% of the 36% of second home purchases means just 23% of all homes purchased were for investment. So, 77% of all homes purchased are made by people to live in. How this is construed to mean there is a bubble - when looking at the big picture - is dumb founding. What this means is that American's have a lot of wealth and are using it to purchase second homes for rental income, retirement, vacations and yes, speculation.
You may find this scary but it's nothing more than a result of the incredible wealth generated by our economy.
70% of Americans live paycheck to paycheck.- Scary
Wherever did you get this number? You do scare easily, don't you?