Paula Henry

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What Caused the Housing Crisis?

October 3rd, 2008 categories: Indianapolis Real Estate News, Indy Foreclosures, Real Estate Financing

Warning - this post is political in nature!

Not being one to publish political views on my blog, I have been debating for over a week about whether to post this video here. Ultimately - I decided the general public should see the video and make their own conclusions.

Even as a REALTOR, I wonder, how did the climate of the real estate market change so dramatically in such a short period of time. I believe this video answers the question best. The simple answer is, supply and demand. When the supply of “easy” loans were made available, the demand for such loans increased. As more people qualified, homes were quickly purchased, decreasing the supply of inventory, which increased the demand. Everyone seemed to jump on the bandwagon and money was easy to get.

Although Indianapolis did not have the same appreciation as many of the hotspots around the country, we are, nevertheless, experiencing the effects of the changes. We have our share of foreclosures and short sales, just not on a grandiose scale as some areas. We have other issues here such as property taxes, which have affected homeowners. Still, the supply of easy money was the beginning………along with the belief that real estate values would not go down.

Watch the video for the informational value, not the political opinion.

http://www.dailymotion.com/videox6wxmr

This entry was posted on Friday, October 3rd, 2008 at 1:30 am and is filed under Indianapolis Real Estate News, Indy Foreclosures, Real Estate Financing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

  1. Dallas Realtor said at October 4th, 2008 at 7:58 am

    THANK YOU - This is a great video. I go the URL and emailed it to all my friend (Dem & Rep). I new a lot of the stuff they were talking about but I didn’t know were to find it. I links in the video helped.

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