Why?

News. New-home sales fell to the lowest on record. The supply of homes at the current sales rate increased to 9.2 months’ worth, the highest since May, from 8.9 months. It was the fourth consecutive month of declines and the worst showing on records dating to 1963. January's results, meanwhile, were revised upward slightly to a pace of 315,000.

Congress extended the deadline until April 30 and expanded it to cover existing homeowners who move. But economists and real estate agents say the extension has not had much of an impact on sales.

My point. I do not understand all this emotion about the housing industry and the fact that we have to own a house.

It is quite clear from what we went through in the past few years that we are bound to face financial and economic disaster if we encourage people who cannot afford it -- who do not have the money -- to own a home.

What is wrong with renting -- people do not have to pay property taxes, they avoid maintenance costs, and save because do not have to buy furniture and appliances.

I know. It sounds against the conventional wisdom. But the markets are winning and eventually will force a large portion of the population to rent until they save enough money to buy a house.

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked Top Market Timer in 2009 and 2010 by Timer Digest

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