Monday, April 24, 2006

Ball and Chain

The Wall Street Journal has an article (sub'n req'd) discussing the rise of 45 year mortgages. These mortgages are especially popular in California where home prices have spiraled out of control.

I suppose that even 50 year mortgages are better than living in an apartment forever.

But it's just another sign of how oppressive the housing market is in venues like Southern California, Washington DC, Phoenix and Miami. The analysis I read suggests that in markets where people continue to immigrate, housing prices will remain steady or even climb. Housing markets are obviously quite local.

Of course, rising sea levels should make real estate in Miami worthless within the next couple of decades. The influx of environmental refugees states like Florida and Louisiana in the next couple of decades is going to make the New Orleans refugees look like a drop in the bucket.

1 comment:

The English...Circulation Supervisor! said...

I used to think the lenght of my first mortgage would be determined by my current household income. Now it's more likely that it'll be determined by the size of my husband's student debt. We're baby bound in 5 years with 55,000 CAD in debt. Bring on the 45 year mortgage. ;)