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Posts Tagged ‘Housing Market’

Obama Boom: Housing Market “Worse than expected” and “Surprise” drop in Consumer Confidence

by Phantom Ace ( 119 Comments › )
Filed under Barack Obama, Economy, Misery Index, Progressives, unemployment at May 31st, 2011 - 2:30 pm

Thing are always unexpected with the greatest economic recovery since the foundation of the Han dynasty in China. In fact the Obama Boom’s anemic performance is always called unexpected, stubborn or now “worse than expected.” The housing market is undergoing a double dip recession. Prices and sales are declining again after temporarily stabilizing due to the housing tax credit. As always governmnet can only artificially prop up a market. As soon as that artificial demand is gone, teh decline continues and that is what is occuring.

U.S. single-family home prices dropped into double-dip territory in March as the housing market remained bogged down by inventory and weak demand, a closely watched survey said Tuesday.

The S&P/Case Shiller composite index of 20 metropolitan areas declined 0.2 percent in March from February on a seasonally adjusted basis, in line with economists’ expectations.

The price index was below the low seen in April 2009 during the financial crisis. The glut of houses for sale, foreclosures, tight credit and weak demand have kept the housing market on the ropes even as other areas of the economy start to recover.

The 20-city composite index was at 138.16, falling below the 2009 low of 139.26.

Read the rest: ‘Double-Dip’ in Housing Prices Even Worse Than Expected

Worse than expected is the new term. How can anything be expected if there are no good paying jobs being created? People don’t have money to buy homes because they have crappy jobs. With homes values declining, people don’t want to get a depreciating asset. This is all due to one truth, Obama’s presidency is worse than expected!

Update: Now the media is reporting that Consumer Confidence took a surprise drop in May.

U.S. consumer confidence slid in May as consumers turned more pessimistic on the outlook for the labor market and inflation worries rose, according to a private sector report released on Tuesday.

The Conference Board, an industry group, said its index of consumer attitudes fell to 60.8 from a revised 66.0 in April. The reading was below economists’ forecasts for 66.5.

Unexpeted, worse than expected, stubborn and now surprise are the tersm being used for economic reports. Maybe they should realize tha until we get our fiscal house in order, we will not have a good economy.

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Posted in Barack Obama, Economy, Misery Index, Progressives, unemployment | 119 Comments »

The Obama Boom: Housing goes Bust

by Phantom Ace ( 132 Comments › )
Filed under Barack Obama, Democratic Party, Economy, Misery Index, Progressives, Republican Party at May 9th, 2011 - 2:00 pm

The Obama housing credit masked the rot in the real estate market for a while. They created  false demand and only temporarily stopped the slide. Now that the last round of credits have expired, the downward spiral continues.

BOSTON (MarketWatch) — If you thought the housing crisis was bad, think again.

It’s worse.

New data just out from Zillow, the real-estate information company, show house prices are falling at their fastest rate since the Lehman collapse.

[…]

What a foolish boondoggle those tax breaks for home buyers have turned out to be. The government spent an estimated $22 billion between 2008 and 2010 on tax breaks to prop up the housing market. All it achieved was a brief suckers’ rally that ended last summer.

Read the rest: Housing crash is getting worse

Both parties are to blame for this mess. In the 90’s Clinton passed the Community Reinvestment Act that forced banks to give out loans to anyone who wanted them. Bush kept this boondoggle going with his ownership society policies of encouraging home ownership. Barney Frank covered up the risks that Freddie Mac and Fannie Mae were posing to the economy. The fact that both parties support home ownership for all created a distorted market. Rather than let it correct itself, the Obama Regime gave up to $8,000 in tax credits. This created artificial demand that came to an end as soon as the credits expired. The result of these policies are that 28% of all home owners are now underwater on their mortgages.

Home ownership is not for everyone. It actually keeps people locked into a metro area and prevents them from being mobile. In today’s type of economy, one needs to have geographic mobility to get good paying jobs. The fact that home values keep declining keep people stuck in their homes. With falling prices, people are hesitant to buy. People can’t sell if their mortgage is worth more than their home values. This has created deflationary conditions in the real estate market while inflation rages in the economy.

Government intervention never works and real estate is a prime example.

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Posted in Barack Obama, Democratic Party, Economy, Misery Index, Progressives, Republican Party | 132 Comments »

28% of Homeowners have negative equity

by Phantom Ace ( 18 Comments › )
Filed under Economy, Special Report at May 9th, 2011 - 11:35 am

The collapse of the real estate market helped trigger the economic collapse of 2008. Now 28% of all homeowners are underwater. There is no sign of any pickup in the housing market. With only low paying jobs available banks are not making home loans. No one is willing to buy knowing full well that they will lose whatever money they put in down payment. While the rest of the economy is in a inflationary cycle, deflation is occurring in the housing market.

If you have no desire or need to sell your home, then falling home prices are just on paper and likely temporary, right? Depends on how you look at it.

Falling home prices put more borrowers in a negative equity position, that is owing more on their mortgage(s) than their homes are worth. We call that “underwater,” and for good reason, because for some borrowers that sense of drowning in debt has profound implications.

Today Zillow.com reported a new high in negative equity: 28.4 percent of single family homes with a mortgage (remember, 32 percent of all homeowners do not have a mortgage).

This is not good news and it means millions of Americans are stuck in their homes. Mobility was a feature of America’s economy. Now people are stuck and can’t seek employment in growing areas due to the inability to sell their homes. I’m one of these who have negative equity, I’m stuck where I’m at. There’s no solution in sight to this problem.

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Posted in Economy, Special Report | 18 Comments »