Ambivalent APPLIANCE--Selling new products in a tanking housing market is a tough task

摘要

Receniy, buying a home took on a whole new meaning. Twenty percent down pay-menta seemed to be a tiling of the past, and a plethora of mortage choices made owning a home accessible to many. The euphoria didn't last. Today the housing market's in a crunch because of these not-so-traditional housing loans. What made these options attractive to many buyers was the flexibility they offered-namely more home for your money. But it started to spiral out of control. In the minds of many buyers, more expensive homes needed to have a more expensive car in the driveway and high-end consumer goods throughout the living spaces. Homes became cash machines. Then the bubble burst. According to Re-altyTrac's July 2008 U.S. Foreclosure Market Report, "foreclosure filings (default notices, auction sale notices and bank repossessions) were reported on 272,171 U.S. properties during the month, an 8 percent increase from the previous month and a 55 percent increase from July 2007." This equates to one in every 464 U.S. households receiving a foreclosure filing. Now the government has stepped in. Legislation was recently passed by Congress, and signed by President Bush, offering a 15 billion dollars incentive to first-time home buyers in the form of interest-free loans worth up to 7,500 dollars.