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Three Lessons to Learn From the Housing Fiasco

The deflated housing bubble has had widespread effects that continue to poison the lives of many Americans and the greater economy. As much as we are faced with stories of foreclosure after foreclosure, the results of a recent survey by real estate website Zillow suggest that many aren't taking away important lessons from the housing debacle. ABC News Consumer Correspondent Elisabeth Leamy is discouraged by this and offers a few key takeaways from the popped bubble.

  1. 17 percent of people say they plan to buy a house with zero percent down. Leamy says: "Zero-down loans are not available anymore . . . A 20 percent down payment makes a lot more sense. Time to start saving up."
  2. 55 percent of people say the reason they want to buy a new home is so they can get a bigger one than they have now. Leamy's reaction: "Hey, if your family can afford a bigger house in this economy buy it . . . But for those who can't afford it, it's time to get comfortable with more modest living."
  3. 30 percent of home buyers told Zillow they plan to own their next home for five years or less. Leamy's response: "Experts are horrified. Most real estate watchers are saying you should not bother buying a home these days unless you plan to stay for at least seven years. Why? Because the market is volatile."
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