Another effect of the housing boom that peaked in 2005 is the lowering of standards and quality built into these homes. Construction defects increased with the boom and now many people are finding serious problems with their homes. Foundation problems seem to lead the list, followed by water penetration and mold. A lack of skilled workers, short cuts, a rush to make money and an overwhelmed government policing staff all lead to this disaster. This has left many with homes that repairs would cost more than the home is worth. One example is a lady in Minn whose home needs $228,000 to repair and the home is only worth $190,000 when repaired! Foundation problems can be very expensive and sometimes not even repairs can solve the problem. Many builders faced with these claims simply declare bankruptcy and go on leaving the homeowners holding the bag. Most home warranties are only good for 10 years, after that, you are on your on. Also many contracts for new homes contained clauses the required the homeowner to first allow the builder to make the needed repairs, and if not, for the whole action to go to formal arbitration before the homeowner could even file a legal action. The time consumed by this process pushed many people beyond the 10 year warranty period and thus, no protection. I hope you had an independent home inspector go over your new home before you signed on the dotted line. I have found over the years that new homes were found to have more problems, and certainly, potentially, much more severe problems than home years older. Buyer beware!