Housing Bubble

MSNBC is reporting that new home sales took a tumble in November, further perpetuating my belief that the housing market across the country is in for a major slump. This is exactly the reason why I haven't purchased a home yet.

Where I live, thousands of people have used those psuedo-mortgage products like ARM's to buy their first homes and second homes. However, these people are in for a major shock as interest rates start climbing higher. It's becoming vastly apparrent that these people are having more and more difficulty with affording their monthly mortgage note. Case in point: I live on street that's very busy. This street has lots of 'dead space' on it (i.e. space where people can park their cars). Currently, everybody has decided to use this 'dead space' as a space to park their car that they have for sale. I'm looking out my window right now see literally 20 cars all lined up on the street with 'For Sale' signs on them. Interstingly enough, most of these vehicles are Audi's, BMW's, and Mercedes.

To me, this is a very strong correlation that people are having a difficult time of making their mortgage note. More on this as the housing bubble continues to burst.