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Really? So the "New Price" signs on 90% of realestate signs mean a "higher price". haha. Ok, just a little common sense and realty here. First of all the "used" home market is only reserved for a bulldozer. Very few "granite counter tops" and even less three or four car garages are going to be equity plus in the next five years. Next step, the market is changing as more boomers are moving into smaller homes, townhomes or even smaller as this is the goal of the top 2% wealth consolidation plan. This is taking place in America again by the millions. And as the banks are praying on young people with "for now" good incomes and credit the older home market is going to totally bust by the absolute "millions" for another 15 years plus. Its all done, bulldoze down the older neighborhoods and turn them into playground parks. Bankers will still be smiling and the new home owners of today will have plenty of room for their chidrens organized "play time". Just another sad segment of history they will read about in 20 years.
Bgmach3 I have no idea what you are talking about. Prices are up. Sales are up...and in actuality the Strib did a story a few weeks ago about townhome sales on the decline. Your theory is not based in reality.
Housing recovery? In late december, the federal gov't (specifically the census bureau and HUD) provided the latest housing numbers with their november home sales report. Annual US home sales are projected to come in at around 377,000 homes for all of 2012--a slight miss from the projected number of 380,000. A total of 27,000 homes were sold in the entire country in november--only 3000 in the midwest, and only 2000 in the northeast. Of these 27,000 (the lowest number of home sales since feb, 2012) 9000 were still under construction and 8000 were not even started yet. In 1982, at the height of another horrid multi year US recession and with interest rates at 18+ percent, there were a total of 412,000 new home sales in the US. And btw, there were 82 million FEWER people living in the US in 1982. Amazing what a little (ok a LOT) of foreclosure stuffing does to prices and inventory. Then there's the fact that wages now are lower than they were in 1973 in nominal terms. Add in the all the boomers dying to sell who can't because they're either under water or too stubborn to take less than the $20 million they think their freeze/thaw cycle shack is worth and you've got some "headwinds" here. This is the most fraudulent and manipulated housing market. . .since the last one. Don't believe that? Wait til interest rates start to rise (as they must). But the sheeple don't seem to mind. As long as you live a fact-free existence everything is fine.
If sales and prices are up how come value is still falling I lost 30k on my house. If I did not own a house I do not think I would be buying one now why buy a house and a year later the value falls.
Most of the homes that a being bought are for investment purposes, They can spin it any way they want, but there is no recovery. Anyone that belives that there is I got some Ocean Front Property in Arizona for sale.
Posted by Frankie:
"Most of the homes that a being bought are for investment purposes...."
Therefore, investors apparently believe that the market for their investments to be going up!!! Wouldn't you think¿¿¿
This is a recovery? My home has lost $200k in value since 2008. Yet in the era of big government my taxes magically have gone up on it. How does that work? If this a recovery we are in deep trouble. Gold is $1600 an ounce for a reason.....
The only houses I know that have recently sold were forecloses for investment purposes.
The smart money has been running into the market for over two years now. Those telling you otherwise are likely the same folks that decided to sell all their stocks right after the market crash in 2008 and missed the full recovery. Those of you that are waiting for a sure thing will have already missed the opportunity.
You can pay an investors mortgage by paying them an exorbinant high rent or you can buy a home and take advantage of low prices, low mortgage rates and tax deductions. Owning isn't for everyone but if you have a steedy job and plan on being in the area for 3+ years it might be a good fit for you.
The comment that mentioned 'gold' is on to something. Housing sales are largely based on the Fed keeping interest rates low. Gold is up for a reason. Rates will go up and housing will not be an investment. It will be a place to live.
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