Homeowners Going Into Debt to Buy More Real Estate
Here's a telling quote from the Journal article:
"For now, however, so many Americans are racking up such huge paper profits in real estate that herds of new investors are crowding into the market every day. Thanks to rising home values, they have lots of money to spend."
The article goes on to say that according to Economy.com, Americans pulled out about $705 billion in equity from their homes last year compared to $266 billion in 1999. That's a huge increase that was probably fueled by the fact that the average home price rose 50% in the last 5 years.
Tags: Housing Bubble, Home Equity Loans