Skip to comments.Existing home sales drop 3.8% (Obama's booming economy! /sarc)
Posted on 06/21/2011 8:42:26 AM PDT by tobyhill
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I agree. That’s not even to mention the interest costs if not paid for outright. Depending on size and quality of both housing units, it’s quite possible that the interest alone on a site built home may pay for several mobile home replacements over a 30 year mortgage. To each his own, I suppose, as long as one can actually afford it.
For a long time a house was where you raised a family; as more people defer or avoid families altogether, that is removing the incentive to invest 30 years’ payments in a place when demographic changes after 30 months can be shocking.
At the same time, there are few people now who work a job that is not at risk of either 1) being sent overseas, or 2) having scabs imported to replace them. In this environment, houses are being lost by even the most prudent buyers. We are being reduced to serfs, and the elimination of private ownership of property is just one step; autos aren’t far off.
Obama continues with the destruction of the
Nation's wealth and savings.
Most of the claimed financial advantage of a site built house over a mobile home can be eliminated if you realize that they base the comparison on a site built house PLUS LOT against a mobile home MINUS LOT but bought with furnishings included in the price. The sales figures are based on selling the site built house PLUS LOT against selling the mobile home MINUS LOT to be moved off the lot. As I told the lady, if her home was sold to be moved off the lot it would not sell for as much as the mobile home would because the mobile home is designed to be moved if necessary, the site built house is not. I am not pushing mobile homes, I just hate to see people make absurd comparisons. Not even apples and oranges, more like watermelons and blueberries.
I’m trying to get out of the construction industry as we speak. It’s devastating.
You’re half correct: the parasite class will have children regardless of their prospects because we all pick up the tab for them and they’re satisfied raising them in government subsidized pig pens. Sadly, they’re raised with the values of their parents and the problem compounds itself. Meanwhile, responsible people delay child bearing because of severe economic uncertainty or lack of funds.
I still think a lot of those that voted for Obama in 2008 are either racists or idiots, usually they are both.
Cash buyers accounted for at least 30% of existing-home sales for the fifth-straight month in May. Cash buyers were 35% of buyers in March.
Think about that. Most of the cash buyers are investors seeking to turn the houses into rental units. The other 70% represents typical buyers using mortgages to obtain owner occupied houses.
The housing market is in a severe depression and there is no velocity in the market. People are reluctant to move from say, Detroit to Dallas for a job, because they cannot sell their house. People won't even move from Burleson TX to Plano TX, or Peachtree City GA to Alpharetta GA in the same metro area for a job, because the housing market is stuck. People need to be confident they can sell their current house before they can consider moving. And they may not be able to afford to 60 miles each way with gas at $4/gallon.
The only people benefiting from the low housing prices right now are current renters who have the down payment and the credit rating to be able to buy a house. And $20K-$30K in the bank and a credit score over 700 is not your typical renter.
Kinda like student loans. The government guarantees the loan...for life. Non-dischargable in bankruptcy. Thus you are a slave to the U.S. Dept of Education for the rest of your life. That is, until they raid your house for non-payment and shoot you and your dog.
I wonder how many of us could have actually worked our way through college without any loans if the government would have kept its nose out to begin with.
Agreed. Student loans is the next big thing. I made it through two degrees without ever taking a student loan (scholarships), and I am thankful. A lot of my friends were raving about student loans, and how they bought cars, etc. I am so very, very grateful that I never ended up taking one. I racked up other debts, for cars, etc., but never a student loan, I guess I was lucky.
Speaking of the Dept. of Education, we now know what those shotguns were for that they purchased a few years ago. Soon government will control virtually all jobs by declaring a license is required to do anything, and that a degree is required for the license. Then they just raise the amount of Pell Grants until tuition is skyhigh, and they can control who can work and who can’t. They’re already doing it, it’s only a matter of time before everything is regulated out of existence or into governmental hands.
There are numerous goings on with housing. I read some months ago that the reason bank’s are sitting on foreclosed houses (I hear they are foreclosing less because of the paperwork/MERS debacle), is because there is some program that will pay a bank up to 85% of the NOTE value, if they sell it at auction. Therefore they forclose, and go to auction, refusing any offers on the house, because if it’s less that 85% of the original NOTE we the people pay the difference and pick up the tab. Hence, keeping housing prices skyhigh, too (Beside yesterday’s news that there’s a $1 Billion fund to help pay for people’s mortgages/loan), the goal is to make housing further unaffordable to the common man.
(Transportation is next, mark my words. They are all going on in tandem, but it’s only slightly behind, lest the frog boil too quickly.)
Since the bubble burst, the banks are requiring real downpayments and that the borrower actually have a job. That cuts down the pool of potential buyers. Plus the potential buyer market is much less because so many of them are not working. And there is a glut of houses on the market that skews the whole supply portion of the market. This situation won’t clear up until the feds back out of running this industry.
Bad weather and high gas prices? Surface thinking or just repeating what they are told by the baraq regime.