From the Fauquier Times-Democrat today.
A few years back I was at a photo shoot for a house featured in our real estate section. . . . I knew the real estate agent, and asked her what the house was listed for.
"$535,000," she said.
"That seems pricey," I replied.
"Maybe, but it should sell quickly."
The house was nice and all, but it didn't seem half-a-million-nice. I asked her how people could afford it.
"You don't have to put any money down," she said.
"You get a first mortgage for 80 percent, and a second for the other 20 percent, and you can get in without putting up any money. My 22-year-old son just bought a house for $450,000 with no money down. It's an interest-only loan."
I left there knowing that the housing situation was in bad shape, only nobody seemed to notice at the time.
. . .
How will this bubble end? Badly, I'm afraid.