Cost of homeownership - 1

Principle + Interest + HOA + Property Taxes + Insurance + Maintenance + Extras cost of Utilities + Extra cost of Commuting to work + Lost Opportunities for Mobility + Extra purchases just to fill it up with junk

Only the principle builds equity. The rest is all cost.

Homeowners

Why do they address them as "Homeowners", when, for all practical purposes, they are mortgagors?

Marketing.

Foreclosure rate ticks up again

After the $26 billion robosigning settlement, the foreclosure rate is ticking up, as expected. Why should it not result in home prices sliding down again? A realtor I know said "There is some chance it may result in softening of home prices". Really? I thought markets were more efficient to price that in.

So here it is. The changes in the rate of foreclosure is a somewhat leading indicator of the changes in home price index.



And here's the data and the correlation is -0.75, implying a highly negative correlation.



The further price correction starts in 3...2...1...