Posted on 04/27/2014 4:51:51 PM PDT by blam
US Housing Market Is Down For The Count
Housing-Market / US Housing
Apr 27, 2014 - 10:55 PM GMT
Raul I Meijer
Recent news, graphs and data confirm what we have long said would inevitably become clear: the entire global economy appears to have “functioned” through an orgy of refinancing, LBO and M&A lately. That is to say, zombie money has been enthusiastically slushed and re-slushed around to provide commissions, bonuses etc. to bankers and brokers, a process enabled by central bank and government policies in which large amounts of credit were thrown against the wall like so much Jello, hoping – but not demanding – that some would stick. Zero bound interest rates made this process all the more attractive, since it was crucial to lure mom and pop back in. But now, if our eyes don’t receive us, it is reaching its inherent limits. And that’s going to hurt something bad.
There has been such a flood of numbers in just the past week that it’s hard to choose, and to keep anything I would write on the topic from becoming an entire book. I’ll do my best. Let’s start with a few graphs that John Mauldin posted this weekend, which may seem a bit of a detour when US housing is the subject, but which are vital for understanding just that. First, from Merk, central bank balance sheets growth until January 1 2014. While most of you may be aware of the Fed Balance sheet growth, fewer might know what the Bank of England has been up to: a 200% growth in just one year, from mid-2011 to mid-2012. Note also that the Bank of Japan has been in the QE related game much longer than depicted by the graph’s timeline.
(snip)
(Excerpt) Read more at marketoracle.co.uk ...
"One poll discovered that 29 percent of all Americans in the 25 to 34 year old age bracket are still living with their parents."
But they have "free" healthcare so all is good.
Well if they make it where I cannot pay my mortgage, I will tell them to come and get it and good luck selling it. There are a lot of houses around here on the market, but no one is buying. Some signs in yards have been up for months and months with no buyers. One house down our road was on the market for SEVEN years!!! It sold a couple of months ago. Probably got it for a steal.
> Probably got it for a steal.
Probably got it for market value.
Sounds like my neighborhood.
Yeah, but you get to paint the walls whatever color you choose.
Bump
There has been NO ECONOMIC RECOVERY of ANY KIND since 1964, everything has been Borrowed and Printed. Enslaving our youth in perpetual debt to pay for our Wants today, while simultaneously DEVALUING the American Dollar. In fact I defy ANYONE to show 1 single quarter in the last 30 years with positive economic growth after REMOVING GOVERNMENT DEFICIT SPENDING. It cannot be done, don’t waste your time. Remember the United States of America OFFICIALLY DECLARED BANKRUPTCY on 8-15-1971, We have been BORROWING EVERYTHING since that day to PAY for Day to Day expenses.
I bought the house I'm presently living in during the summer of 2004. I looked at two other houses on this same street (within one mile of me) before buying this one. Those other two houses are still empty!
(And, there's a new empty one near-by)
Then there’s the 1913 bankruptcy
http://www.gemworld.com/USA-Traficant.html
What the hell does your response have to do with the abject FRAUD perpetrated against the American People by the Money Changers and their stooges in Congress ?? It appears you haven’t been paying attention the last 40 years.
Was out walking around our neighborhood this morning and noticed that we have not one house for sale. Also have seen very, very few homes for sale when driving around the area. Prices have really begun to increase in the Houston suburbs. Even if I did sell and try to take advantage of the increase, I couldn’t afford to buy anywhere else.
We have had some people transfer to jobs in other states but they have kept their homes and just rented them out. So far the renters are maintaining the property but that’s always a concern.
I believe that the real long-term problem, is how will retail sales/low-level clerical jobs, even with two people working, buy a $350,000 home? You might say, with their inheritance. No, that will be gone from student loan payments...
The pie is getting smaller, and there are more people fighting for a slice of it. Not good.
Good points you raise. They’re not going to be able to buy a $350,000 home, probably couldn’t even have enough left over to save money to buy a home in our area at $170,000 (4 br, 2.5 baths) if they have low level jobs. But if one of had gone to trade school and was able to become a licensed electrician or work at a similar trade, they could be more than okay.
Too many people think that you need to spend/borrow whatever it takes to get a four year degree which looks more and more worthless. IMO those young people would be way ahead if they would concentrate on learning how to fix/repair something that people require on a daily basis. There are decent jobs out there. Will require a change in mind set though.
A house valued at $530,000 in the neighborhood sold at $80,000 at auction.* One more or less across the road sold at auction also. Still, For Sale signs are blooming on lawns like dandelions.
We are renting since we are temporary residents in this state. This neighborhood is on a lake and the lots are 5 acres are better.
Last spring the For Rent signs came down and the For Sale signs went up. By fall the For Rents signs were back up. It will be interesting to see what happens this year.
*It would appear said house is currently occupied by a whole tribe of latino worker types.
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