Dear Monty: We have made offers on four homes. Our agent says that people are buying them for cash and for more money than we offered, yet she says she cannot tell us what to do or offer. All she does is show us the houses and fill out the paperwork. We are tired of searching and losing all the time. What can we do?
Monty’s Answer: Until 2008, home prices had risen gradually since Freddie Mac began tracking in 1971. America learned for the first time in 2008 that housing prices do not always go up. After the period from 2008 to 2010, many home prices decreased. The price collapse primarily affected consumers who bought a home from 2000 to 2008, when prices in many cities skyrocketed. When Wall Street figured out that investing in derivatives was a terrible idea, the market imploded, and home prices fell. Mortgaged homes were worth less than the mortgage. Homeowners defaulted and walked away. Some experts believe that we are going to experience it again. In my opinion, no matter how it turns out, as in 2008, the federal government is responsible. They have good intentions but trying to rearrange the economy for special interests has consequences….