Why blame the builders for the stupidity of buyers.
You will find that many (if not most) of the buyers in the last 5-6 years were youngsters just out of college OR maybe with a few years' experience. The common characteristic amongst them is ignorance. Firstly about what a downtrend looks like and how it can ravage ones finances. Second, about the fact that no one can possibly guarantee a high and ever-growing salary for 20 years. Thirdly, about being savvy enough to ask questions such that they are sure of paying a decent premium and NOT be robbed blind. But most important of all, in not having the common-sense to understand that NOTHING on earth can be achieved overnight, especially wealth, by flipping and speculating in Real Estate.
At the end of this decline (which, in my opinion will take RE down by 50% to 75%) we will have a whole generation of youngsters much wiser though much poorer.
Rocker is absolutely right. The smart will wait to buy property at distress prices. And the foolish will learn from the school-of-hard-knocks and get smarter for the next cycle.
