Now may be the best time to buy a home. At least that’s what the majority of real estate agents in America will tell you if you ask them how the housing market is doing.
They’ll cite various statistics and give you a “feel” for the market from their personal experiences to convince you this is the case. But if you’re paying attention, then it should be clear that there is, in fact, no recovery in the housing sector. And any gains we may have seen over the last few years are nothing short of a Federal Reserve fueled mirage, much like the stock market.
The following chart from Bank of America is indicative of some serious fundamental problems, not just with the housing market, but the broader economy as a whole.
If you ask the experts they’ll give a host of reasons for why sales are down, as well as prognostications for why the real estate market is about to turn the corner and head back to new highs.
The weather, of course, is always to blame for lackluster sales in homes and consumer products, and that, apparently, is the case once again. But the National Association of Realtors has, for the first time ever, indicated that there is another key challenge facing home buyers.
Student debt appears to be a factor in the weak level of first-time buyers.
“The biggest problems for first-time buyers are tight credit and limited inventory in the lower price ranges,” he said. “However, 20 percent of buyers under the age of 33, the prime group of first-time buyers, delayed their purchase because of outstanding debt. In our recent consumer survey, 56 percent of younger buyers who took longer to save for a downpayment identified student debt as the biggest obstacle.”
Brown notes the survey results are for recent homebuyers. “It’s clear there are other people who would like to buy a home that are not in the market because of debt issues, so we can expect a lingering impact of delayed home buying,” Brown added.
NAR via Zero Hedge
In short, we’re broke as a nation and we’re broke as individuals.
A recent micro documentary that discussed America’s College Debt Bubble in detail predicted that we would soon begin seeing the fall out from trillion dollar student loans. Apparently, that fall out has already begun.
But not to worry, because housing experts indicate that we may soon see home sales and prices start to rise, an effect that will be fueled by more jobs and rising incomes:
“Going forward it will take sustainable job and income growth to propel would-be-homebuyers back into the market. But with the labor market uneven at best, it may take some time before the housing industry regains the momentum seen earlier last year.”
As you have probably deduced, there’s one key problem here. There is no job growth. And, any income growth already has inflation priced right in, so purchasing power will not increase and is likely to actually decrease because the rate of inflation is outpacing what Americans are being paid.
Thus, if we are awaiting a real estate recovery and the necessary steps for such a recovery require an improvement in the jobs market then you can forget about it.
The housing market is the pulse of our nation. It was the trigger event for the collapse of 2008, and it looks like it is now indicating what many of us already know: that we are in the midst of another recession within a broader depressionary trend.
Couple this with the Federal Reserve now indicating that they are pulling back on $85 billion in monthly market stimulus, and you can probably guess where this is headed next.
Welcome to Round 2.
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Jus’ guessing here. May of 2011, May of 2012 and May of 2013. Given the real unemployement rate is around 23% it kinda makes sense.
No job growth?
Absolutely correct.
Big Business has exported many of the manufacturing jobs overseas or south of the border. A person making 12 bucks and hour cannot afford most homes that are for sale today. We in this country stopped looking out for each other in the last few decades. Maybe sooner.
Most people won’t spend ten cents more to buy and American-made product even though it benefits our country as a whole. This nation should have tariffs on everything that we as a country don’t NEED to import. Then the smarmy “Screw the Americans, I want money” powers that be would be forced, in most cases, to bring jobs back to the USA.
How do we do this, exactly?
That is the million dollar question.
Yeah they won’t.
Spend ten cents more for a product of higher quality (aka made in the US). I’m in consumer products. WE TRIED IT. It was a complete disaster. I think we never even finished paying off the tooling before it just croaked due to lack of interest.
The only reason home sales ever “looked” like they were improving is because of large bank owned corporations buying houses with “QE money” in hopes of renting them and fooling the American public just a wee bit longer.
Banks wanted to become slumlords, but they have stolen so much the people have no more money for overpriced rents.
More smoke and mirrors.
The joke will be on the banks when they collapse and the People reclaim the stolen homes for FREE.
Why buy a house today when you will be able to find millions of them for free in a couple of years.
Many people are unemployed, underemployed or unsure of their employment future. They might need to move to find a job.
Under this atmosphere, people aren’t going to buy a house.
Bull crap if there’s no recovery, this is an election year and the dems /progressives/communist/dog wads have to keep power in order to keep hope and change moving forward, it doesn’t matter what reality is, the mouth pieces for utopia will spew out the propaganda that’s required to paint a pretty picture. So there is a recovery, at least in the voice of the establishment aka the democrats aka the communist, aka TNWO, aka………
I would imagine that there are people who work at a place that makes widgets.
Those same widget employees would then go out and purchase a slightly cheaper “foreign made” widget for themselves, and pat themselves on the back that they saved a few bucks.
They then fail to understand why they just got laid off.
The sad thing is, if anyone tries to explain the reason to them, they get angry.
“It is much easier to fool someone, than to convince them that they have been fooled.”
Sometimes, societies as a whole can fool themselves. We, as a society, have been doing just that for a long time now.
We need to identify and blame the incorrect policies in order to fix what is broken.
Oh, and pay just a bit more for an AMERICAN product.
GarageLogicFan,
I see you are living up to your name, well done!! The most uncommon thing in America is common sense. The lack of logical thinking and common sense over the years have taken their toll and the results are what we see before us today. Apparently there is an equal and opposite reaction for every action!! Michael Jackson was right, you have to “look at the man in the mirror!”
why it’s a terrible time to buy an expensive house…google it and read EVERY word, if you REALLY want to know! this is hands down the BEST explanation that is out there! http://patrick.net/housing/crash1.html
it was taken down by patrick after several years, because he thought nobody would read/listen to that advice anymore. it was SO true when we were in the middle of the bubble back years ago, but prices had fallen so much, it seemed the “advice” was outdated/too late…anybody thinking real estate is a good buy right now simply MUST read this and it will change your mind. REALLY. it’s the most important thing on houseing you’ll EVER read!…follow all links to several pages of arguements for/against buying and after an hour or two of reading i THINK MOST people will understand how inflated houses have become, again….houses will fall to HALF of their current value within a couple years, I THINK. i’m proud to say it saved me from the bubble and he’s the reason i sold my house in 2006 just after the TOP….rented a few years, and bought back near the bottom. i emailed him a year or two ago and begged him to put it back UP and he did, so i thanked him profusely ….PLEASE read it, you won’t be sorry.
You have it wrong.. US products Shoulld cost less if we are truly as great as we think we are… America led the world in productivity.. We lost that. “Mr. Market” will always prevail. The best products for the lowest cost is what will sell. No matter where they are produced..
No job Growth. Even the “official numbers” reveal there was job loss.
The Hidden Rot in the Jobs Numbers
“Hours worked are declining, resulting in the equivalent of a net loss of 100,000 jobs since September.”
“The labor market’s strength and economic activity are better measured by the number of total hours worked than by the number of people employed. An employer who replaces 100 40-hour-per-week workers with 120 20-hour-per-week workers is contracting, not expanding operations. The same is true at the national level.”
“Thus, although the U.S. economy added about 900,000 jobs since September, the shortened workweek is equivalent to losing about one million jobs during this same period. The difference between the loss of the equivalent of one million jobs and the gain of 900,000 new jobs yields a net effect of the equivalent of 100,000 lost jobs.”
With Obamacare, we can expect this trend to continue. It gives INCENTIVES to businesses with less than 50 full-time employees to “keep the number of hours LOW to avoid having to provide health insurance.” Obamacare defines full time as working 30 hours per week.
http://online.wsj.com/news/articles/SB10001424052702304250204579433442474053878
The demographics for housing are over. I noted that here over a year ago, and predicted a second leg down in the real estate market.
It is a buyer’s market so agents are correct that it is a good time to buy and its going to get better! If you are a savvy buyer with cash or good credit you can make an incredible deal now for a repo or distressed sale: particularly a high end property.
These McMansions have been hanging around since the crash. wait a while longer and you will be able to use your “buy one, get one free” coupon.
That applies to China too! Hong Kong is having a fire sale! The mainland is next! What’s next, what’s next, what’s next!? 🙂
I agree with the durango kidd on that.
Except for “good credit.”
good credit wont get you a hobo on a hotdog.
More like thee best credit……middle class was executed.
There’s nothing like catching a falling knife, clint.
Nothing like it.
It’s funny how “Krugman” Kidd is saying, “I noted that here over a year ago, and predicted a second leg down in the real estate market.” But what he won’t say is, how a year prior to that, he was saying it was great time to buy, too, and the economy was rounding a corner.
Debt donkeys beware.
If it’s going to “get better” and prices are going down, then that means, Now ain’t the time to buy.
Or, listen to the cheerleaders of the bankers. It’s your choice. But don’t ever say nobody warned ya.
Average Guy,
You should change your name to Above Average Guy. You are correct, the proper way to attack a declining market is to be patient and allow the bottom to form. Good for you!!
So who needs a house? Obamacare’s got plenty of coffins waiting for you.
Another reason: Plus, many retirees esp. after a spouse dies or gets laid up, cannot keep up a house; don’t need the space and are sick of keeping up the yard, pressure washing the concrete, pruning, painting, scrubbing mildew, windows, etc. so they sell and go rent which is exactly what I/we plan on doing in a couple of years. The mini mansions won’t sell good, but the ones 1500 to 1800 sq ft like mine sell the best. These are the houses younger folks buy and can afford.
When we were in grade-school we spotted a liar
a mile away and shunned them like the plague.
Now that we are adults and those liars have
become politicians, what has happened to our
acuity to recognize them as such and throw the
bums out on their ear?
This mess began a century ago, and was cemented in place by the WW2 generation. Part of the problem today, is that people still actually believe “elections” are real, and by “voting” for “conservatives”, we can “save America”…
You mean as opposed to the Democrats who vote for liberals to ‘save’ the country?
Jobs aren’t ever coming back with the current business climate in America. America has the highest corporate taxes in the world.
And you can be sure that the businesses are driving those taxes along with the conservatives – right? Then you just may be a dumbass liberal.
GarageLogic Fan,
just today I read that the timeframe Obama has been in the White House, businesses have made some of the best profits in history. At the same time the working class has been beaten down and is in a losing position.
Its going to get much worse.
I think that’s because the businesses are using foreign labor at ten cents on the dollar or less. We in the USA are buying the products on credit. I’m no economist, but it has to give at some point, doesn’t it?
Calgacus,
Large businesses with facilities abroad may have made good profits.
I work in a small business and the company does work for other small businesses. Many businesses. especially small businesses here in the U.S. are struggling. Many employed at small businesses have taken pay cuts.
The increasing costs, taxes, laws, healthcare increases and changes, etc. does NOT provide an atmosphere to grow or start a new business. The mandates of the EPA and Obamacare make it difficult for businesses. Remember, Obamacare provides INCENTIVES for small businesses to stay small and reduce employee hours.
KY Mom I am sorry. I think you misunderstood what I was trying to say. I know small businesses are struggling and some of the top reasons are costs and unknown problems w/ obamacare. Another problem would be less disposable income. But were in a recovery (that is what they tell us).
My point was about corporations and the large businesses. Corporations and politics are one in the same and the system is beyond being corrupt. Seems that Obama and his marxist ways are set to kill off the working class and the small business world here in the US. Once they do that, it’s the 1% running the show and since most of them are part of the NWO, are we surprised?
Anyway no red thumb for you or anything but Ill bet someone comes along and does that. Probably to both of us. Bigger things to worry about than a red thumb on this website.
A coworker’s relative just had her job cut from 40 hours per week, to 20, an across the board cut to all employees at her company; she is now bringing home about $20 per week, after expenses. How long until she loses her home? No coincidence that she also lost her health insurance. This is the future…
Following up on yesterday’s article, about contributing to the crisis in Crimea, how long will it be, that even though we have Freedom Of Speech, we will be blamed and sanctioned for the collapse of America’s economy? People like to have someone to blame, and those who point out the truth always get blamed first.
That lone bugle in the background is getting louder…
“””That lone bugle in the background is getting louder…”””
And it’s playing TAPS
It’s called isolationism, where we are headed IMHO. I think Roosevelt or Wilson used the “isolation” to get America through the Great Depression. Part of the policy was to tariff foreign goods until goods made in the US could match their pricing. It has to make sense economically or it won’t work. The feel good purchase doesn’t matter. Didn’t back them and still doesn’t now.
Supporting my Isolationism theory…notice how we are “drilling like hell”? Going for energy independence here. Can’t go with isolation policies when 1/2 of our energy needs are supplied by foreign nations. Coming soon, price controls and tariffs.
the tariff on foreign goods was one of the reasons the depression hit so hard. it was the Smoot-Harley ariff in ’30 under Hoover. It was meant to protect American business but it ended up destroying the global economy. So when we put up the trade wall ( the tariff created a 50% increase) other countries did the same to the US and global trade collapsed. No one could pay reparations and the global economy stagnated!
You are quite correct. Did some checking on the effects of tariffs. As you stated they did a great deal of damage. It seems that the protectionist side of isolationism isn’t the way to go.
http://www.economist.com/node/12798595
You talking about homes?
Look around:
1. Supermarkets have almost no customers (even Walmart looks inhabited)
2. People does not buy other stuff except food
3. Less people driving cars around
Food prices will double or triple by the end of this summer because of widespread drought around world (USA, Brasil, Australia, Africa, etc.)
People loosing jobs in agricultural sector in California.
How many mexicans will loose their jobs, what they will do?
My 1st concern right now is to pay all debts (thanks God I do not have mortgage).
@ noname
Agreed.
Funny how you don’t hear much of this stuff in the news. If the MSM were doing their “jobs” as they should, we wouldn’t have 10% of the “sheeple” that we do now.
You know what? I’m wrong on that. Half the country would still gladly stick their heads in the sand.
Get out of debt, stock up on essentials, and pray that this drought doesn’t happen.
Find a good church, network with good people, and plant a garden. Every little bit helps.
i wouldnt worry about that mortgage. if things get real bad, mortgage companies wont be able to handle just the squatters. anyone making even a partial payment will be gold.
but those credit card rates are going to skyrocket. anyone with a high credit card balance will be signing over everything they own before card companies give the 1/2 the country a chance to default on their credit card debt.
Thank God I’m not in any kind of debt to anyone on anything.
noname,
I agree. More people will be losing jobs or having their hours REDUCED thanks to Obamacare.
The employment numbers are NOT going to get better. The economy is WEAK. Expenses (rising utilities, taxes and healthcare) and new laws are SQUEEZING businesses – small and large.
Just look around your community. Many businesses have CLOSED. Many business owners are struggling trying to stay afloat.
Obamacare LIES and REALITY
Remember this…
March 15, 2010 – Obama speech in Strongsville, Ohio.
OBAMA: How many people are getting’ insurance through their jobs right now? Raise your hands? A’right. Well, a lot of those folks, your employer, it’s estimated,
would see premiums FALL by as much as 3,000%, which means they could give you a RAISE!
http://www.youtube.com/watch?v=lUd-slJc-GY
Obama Promises To Lower Health Insurance Premiums by $2,500 Per Year
http://www.youtube.com/watch?v=_o65vMUk5so
Average Healthcare Premiums Have Soared 39%-56% Post Obamacare
“Americans buying health insurance outside the new Obamacare exchanges are being forced to swallow premiums up to 56 percent higher than before the health law took effect…”
http://www.zerohedge.com/news/2014-03-19/serfs-%E2%80%93-average-healthcare-premiums-have-soared-39-56-post-obamacare
Think the insurance premiums are bad now, just wait until next year…
2014 – Health insurance premiums are set to skyrocket
“Insurance industry officials state that Obamacare health insurance premiums are set to skyrocket; some people will find theirs doubling or tripling over the next several months leading up to the November 4th midterm elections.”
http://www.breitbart.com/Big-Government/2014/03/19/Obamacare-Premiums-Set-to-Skyrocket
…and yet obummer isn’t hanging by his neck until dead…
First time I’ve ever seen a UFO being hauled openly on the highway…
http://www.youtube.com/watch?v=jB5eYRrVJrw
Flight of the Navigator! Looks just like it.
Great video catch Iowa
I saw a similar video in 2012; I think it’s the same one.
Housing hasn’t returned to the peak it had in 2007. Even with the return of “little or no money down” loans, there are simply not enough people in a position to buy a home. Just remember that your pantry is your grocery store. If it’s not in the pantry or cupboard before the SHTF, you may have to do without it.
viableopposition.blogspot.com/2013/07/united-states-housing-setting-up-for.html
Gear up and good luck everyone.
thanks to inflation, we make WAY less money than we did in year 2000, so home prices will go back to 1980 levels… when interest rates go UP, home prices go DOWN…..math sure is a BITCH sometimes, but like gravity….it’s LAW!!!
I fully understand why this obama administration keeps perpetuating lies about the economy, but I then to have the mainstream media carry his lies makes no sense…..
Thank God we still have the internet and alternative media…..!
It is almost impossible to get a loan approved and when Fannie and Freddy get the axe here shortly it will be even more difficult. Anyone who owns a home with a fair amount of equity should sell now and get the money out of it. That house will be a lot cheaper in a year or so.
Nope. Don’t sell your home. A paid off mortgage is peace of mind. And if the value goes down, then the taxes won’t be as much perhaps. At any rate, no one can kick you out of your own home that is mortgage free unless you don’t pay the taxes, and those taxes will still be less than rent.
You have the ability to harden your own home if needed without a landlord checking every thing you do. You can put up fences for garden or safety. There are hundreds of benefits to owning your home outright. The problem is for those who have debt getting out from under. Make it a top priority and chip away. If you have really tight budget, you should not be eating out at all. Meatless dinners a couple times a week, lots of beans, rice, and pasta dishes, and grow your own garden. Monitor your utility consumption and account for every little penny.
This might be a good time to buy?
Sgt.
For cash if you have it. Mortgages will eventually be adjusted for inflation.
Barn
Inflation its under 3% just ask the Gov.
Oh S#$T they can’t tell the truth if it bit them in the A#@.
A.S.M.S.
Sgt.
Yea , sarge a good time to buy , low rates , good prices.
BUT!!!!!
You had better have a real good job,
You better have an 800 credit score ,
And you better have 20% to put down.
Then if you can manage that you will be lucky that the house (at any price) will appraise for a value the bank will lend on. Good luck.
Dont get me started on qualification for new construction , NOTHING will even appraise for the cost of building materials .
At least all this is true in MI .
I have two new homes on the schedule this year , yup ,you guessed it CASH buyers .
except your property taxes. Those will be at least twice what it is worth.
JOE , those property taxes are what keep me up at night.
At almost 300 a month it aint easy , and it will get worse as you say.
Again i will blame it on Agenda 21 , the world government tryin to push us all into government owned
mass housing units .
It seems to be happening now .
My property taxes are $550 per year. I live in Wyoming.
It is a two bedroom, one bath, older home, nothing fancy. Wyoming has no income taxes and 4% sales tax, with sometimes a 1% local sales tax.
DAISYK , Its complicated but i pay on alotta acres and i dont get homestead exempt OR farm credit on all of it.
Ongoing battle, I am aware of the cost of living in wy.
Envious to be sure , but , i am here in MI and unless i lose everything i will remain.
Lots of woods and water , i dont remember wyoming being that way . been a long time since i visited .
Most of WY is semi-arid, but there are exceptions. Pull up a Google map to see the wooded areas, mostly in the west and NE and South.
I am near a river. Last week there were ice jams and the National Guard was here sandbagging to prevent flooding. Only 3 homes were damaged by flooding. But I worry in a SHTF situation.
Hammer
Yes 800+ and with more than 20%. We been saving for our bug out hide out house. Our place to make our stand!!!
Rolling hills of Tenn.
AIM SMALL MISS SMALL
Sgt.
Sarge, I’m looking into those tax lien auctions for a BOL for me. also in mid-TN.
hammerhead..
Let me know if you need help 🙂 I’m almost finished with the home I’m building now. Another week and I’ll be on welfare…
Stay tuned @WRONG ,
I am workin on a big detroit fish that wants a lodge built near Elk Rapids . You in ?
Gotta finish before deer season.
Better start the footings tomorrow. Good bakery in Elk Rapids all though not as good as the one that use to be in Glen Arbor.
Sure I’m in.
Well alrighty then .
hammerhead
We got a problem with appraisals. It all about square feet, location, and comparable sales in the neighborhood. Housing is the only product I’m aware of that does not change in market value very much whether brand new or 10 years old. That’s not right. New homes are built stronger, more energy efficient, have new home warranties, and require less maintenance than the older ones. The banks and lending institutions want to keep the appraisal values low so they have little to no risk. The result is the builders try to cut every place they can just to have a small margin.
“””The banks and lending institutions want to keep the appraisal values low so they have little to no risk. “””
They risk NOTHING already. Your home is paid for at closing with your signature on the Promissory Note.
That’s why they call it CLOSING, because the contract and transaction are closed and satisfied. The banks then sell your promissory note to recover the “money” the lent you.
Then you are expected to pay them for the house again, with interest, for the next 30 years.
Why buy ANYTHING under those circumstances?
Mortgages DO NOT have to be paid, because they already are PREPAID by your signature on the PN.
The banks can not legally take the house back if the victim raises the defense that the bank lent it’s credit rather than its MONEY.
The bank has engaged in an unlawful act by lending it’s credit, and that voids the mortgage (lien) they claim to have on it.
If people would just take the time to understand the fraud and learn the most basic principles of Law the banksters would be out of business TOMORROW.
Yeah, try that defense in court and let me know the results.
The courts and judges are indeed corrupt, but a JURY can be made to learn and listen. If the judge attempts to tamper with the jury and evidence, you can always FIRE THE JUDGE and demand another while adding the first judge as a defendant to a suit against the offending bank.
The key to winning any case in court is to DEMAND a jury and then bring defenses the court and banks would rather not discuss because it reveals their criminality and puts it into the public record. In many cases, the suit will be dropped long before the court hears it.
You do not and will not hear about the in court successes because the court seals them by marking them DO NOT PUBLISH.
There is an abundance of case law that says in no uncertain terms that it is not lawful to lend credit, and that any bank doing so has no claim of injury or equity interest in what the credit was used to purchase.
If one man brings the issue and does not challenge the court itself while being railroaded, nothing will change. If millions of foreclosure victims brought it the banking system (and corrupted judges) would collapse on itself very quickly.
In your case, Joe, the banks and crooked courts will not beat you. You will have beaten yourself.
Learn the Law. YOU are it’s only enforcer in matters concerning you. On second thought, it is so much easier for people like you to just remain slaves and refuse the fight. Maybe that is the best choice for you.
Freedom ain’t free, and it appears you do not have the desire required to be free.
I have, in fact, made a credit card company (Citibank) GO AWAY and drop a suit because the attorney did not want to be charged with fraud for his filing over an old credit card “debt”.
In most cases a successful defense is NEVER heard in court because the credit lending company knows it will not win against an educated opponent. Instead, they will shift their focus to people like you.
The problem is that most people will not educate themselves and apply the right pressure to them BEFORE the court date when EVERY CASE IS WINNABLE against the banks.
CANDLE – “COMPS” are the problem here , i cant speak for where your at but we just cant get the appraisals to come in right.
I have yet to see a bank take into account modern building codes.
A 60s ranch comps as a modern ranch.
Thats here , MI , where is it different?
It aint right for sure , but thats banking.
Hammerhead
Yep. Same here. South Louisiana.
My house was built in 1930s, but is considered comparable to a 1970s house because we have kept it up by installing full electric, central air, double pane windows, etc. When we moved in, one of the downstairs bedrooms didn’t have any outlets. The entire upstairs still has no outlets, just naked overhead bulbs with pull strings. If I win Buffett’s bracket contest, I might fix that.
Candle, the new homes may be way more energy efficient, but the old homes, say early 1900’s, are built a lot stronger. The only thing I’ve found they were poor on is electrical and plumbing. Structure-wise, these new “confabs” don’t even come close. JMO.
Hammerhead,
I know exactly what you are talking about….fucking bastard bankers!!
But then again…..
I work with a guy, real savvy business money guy for my company. He is building a home in the U.P. where we dream of building. He told me one morning on the walk into work, that I might as well forget about ever being able to buy land and build up there. Said I don’t make near enough money. mind you, he and his wife, who also works for company have to be pulling in 3-400K a year. He made me feel real good about myself and circumstance, like gum in the cracks of someones sneakers. I told him “I can get 40 acres for 40-50K and I have been averaging 1##,### a year the last couple of years, have very little debt, and am working on FICO with just a few credit issues from student loans.”
He said that the mostly underground home you want will cost way more than you can afford at the cost the builders charge up there. I asked him what he meant and according to him, he said it’s not just the banks, but the builders, the contractors are raping ya with their mark up.” He said it’s a sad day when you can’t afford to build in the U.P anymore where it used to be relatively cheap because no one but a few, plus some hunters wanted to own anything there.
BJ , get yourself a builder from under the bridge.
The ones they like to call trolls, i have built in Newberry and the atomosphere was less than “frendly”.
I dont know why they would mark up their labor so high , maybe they think everybody that can build there is rich.
A buncha drunken dummies if you ask me…
He was also saying supplies were marked up grossly??
I told him to rent some trucks and some storage pods, go buy the supplies yourself and drive them up there and store in the pods on your property. It nwould of been way cheaper from how much he said they were marking up lumber adn supplies.
Hanmmerhead,
I have questions about my design and build ideas. DO I take them to a contractor? A architect / designer? Hw do I go about that adn seeing what approximate total cost would be before I even go to a bank?
That way I know what my goal is to work towards as far as savings needed?
[email protected]
It’s not “good prices”. Prices of houses are jacked up 250% over the cost to build them. Saying prices for houses today is good is just absurd.
“This might be a good time to buy”?
From Zero Hedge
(It’s all about property taxes skyrocketing)
In September of 2011, when looking at the insurmountable debt catastrophe that the world finds itself (which has only gotten worse in the past several years) we warned that “the only way to resolve the massive debt load is through a global coordinated debt restructuring (which would, among other things, push all global banks into bankruptcy) which, when all is said and done, will have to be funded by the world’s financial asset holders: the middle-and upper-class, which, if BCS is right, have a ~30% one-time tax on all their assets to look forward to as the great mean reversion finally arrives and the world is set back on a viable path.”
Two years later, the financial asset tax approach, in the form of depositor bail-ins, was tried – successfully (as there was no mass rioting, no revolution, in fact the people were perfectly happy to accept the confiscation of their savings) – in Cyprus, further emboldening the status quo, in this case the IMF, to propose, tongue in cheek, that the time has come for the uber-wealthy to give back some (“it’s only fair”), and to raise income taxes through the roof (which of course would mostly impact the middle class as the bulk of current income for the 1% is in the form of dividend income, ultra-cheap leverage extraction on assets and various forms of carried interest).
And now, a new tax is not only on the horizon but coming fast and furious to allow the insolvent global regime at least one more can kicking: one which will impact current and future homeowners across the world.
But first, let’s step back.
Last week, the IMF did what only the IMF could do: come to the realization that we proposed in 2009, and even the Davosites discussed earlier this year: namely that the middle class is effectively an endangered species, and rapidly on its way to wholesale extinction, and that the polarity between the rich and poor has never been greater. The IMF concluded, with the panache that only this comical organization is capable of, that income inequality “is weighing on global economic growth and fueling political instability.”
The WSJ reports:
The International Monetary Fund’s latest salvo came Thursday in a top official’s speech and a 67-page paper detailing how the IMF’s 188 member countries can use tax policy and targeted public spending to stem a rising disparity between haves and have-nots.
IMF Managing Director Christine Lagarde has made the issue a high priority for the fund, warning—along with some of the fund’s most powerful shareholders—that inequality is threatening longer-run economic prospects. Last month, Ms. Lagarde said the income gap risked creating “an economy of exclusion, and a wasteland of discarded potential” and rending “the precious fabric that holds our society together.”
The IMF’s solution? The same as that of socialists everywhere: redistribute the wealth… because apparently socialism works every time, all the time, with stellar results.
“Redistribution can help support growth because it reduces inequality,” David Lipton, the fund’s No. 2 official and a former senior White House aide, said in a speech Thursday at the Peterson Institute for International Economics. “But if misconceived, this trade-off can be very costly.”
“There’s a sense that the burdens of the crisis have been unevenly distributed, that the middle classes and the poor have footed more of the bill of the crisis than the economic elite,” said Moisés Naím, a senior economist at the Carnegie Endowment for International Peace and Venezuela’s former trade minister.
Oh is there a sense? Is that why the Fed has halted its QE program which takes from what little is left of the middle class and gives to those who already have more money than they can spend in several lifetimes. Guess not.
So how does the IMF suggest going about this wholesale, global socialist revolution? Simple: the way we explained nearly three years ago.
The IMF’s latest paper doesn’t prescribe country-specific measures, but it does offer several proposals that are likely to be controversial. Most notably, the IMF says many advanced and developing economies can narrow inequality by more aggressively applying property taxes and “progressive” personal income taxes that rise as incomes increase.
The median top personal income-tax rate across the globe has halved since the 1980s to around 30%. But the IMF says “revenue-maximizing [personal income tax] rates are probably somewhere between 50% and 60% and optimal rates probably somewhat lower than that.”
We wouldn’t be too concerned about income taxes. After all, one needs to have a job to have income, and as everyone knows by now, jobs also are on their way to extinction, and every central bank everywhere will merely print the money needed to cover the income tax shortfall, leading to that “other” alternative to fixing the debt problem: global hyperinflation (with a little precious metals confiscation on the side: just like FDR did in the 1930s).
But going back to the original point, here is why those in the market for a house should be worried. Very worried. From page 40 of the IMF’s paper on “Fiscal Policy and Income Inequality”:
Some taxes levied on wealth, especially on immovable property, are also an option for economies seeking more progressive taxation. Wealth taxes, of various kinds, target the same underlying base as capital income taxes, namely assets. They could thus be considered as a potential source of progressive taxation, especially where taxes on capital incomes (including on real estate) are low or largely evaded. There are different types of wealth taxes, such as recurrent taxes on property or net wealth, transaction taxes, and inheritance and gift taxes. Over the past decades, revenue from these taxes has not kept up with the surge in wealth as a share of GDP (see earlier section) and, as a result, the effective tax rate has dropped from an average of around 0.9 percent in 1970 to approximately 0.5 percent today. The prospect of raising additional revenue from the various types of wealth taxation was recently discussed in IMF (2013b) and their role in reducing inequality can be summarized as follows.
Property taxes are equitable and efficient, but underutilized in many economies. The average yield of property taxes in 65 economies (for which data are available) in the 2000s was around 1 percent of GDP, but in developing economies it averages only half of that (Bahl and Martínez-Vázquez, 2008). There is considerable scope to exploit this tax more fully, both as a revenue source and as a redistributive instrument, although effective implementation will require a sizable investment in administrative infrastructure, particularly in developing economies (Norregaard, 2013).
And there you have it: if you are buying a house, enjoy the low mortgage (for now… and don’t forget – if and when the time comes to sell, the buyer better be able to afford your selling price and the monthly mortgage payment should the 30 Year mortgage rise from the current 4.2% to 6%, 7% or much higher, which all those who forecast an improving economy hope happens), but what will really determine the affordability of that piece of property you have your eyes set on, are the property taxes.
Because they are about to skyrocket.
It’s a great time to buy…
any imported goodies you might like to get and store.
I foresee rising prices, and supply chain problems coming due to geopolitical, and energy in the short medium term.
But in the short term it’s a good time to get stuff that we may not see again for a while until we really address these worldwide problems.
I am loading up on more snacks because well I like snacks.
Walkers Snacks 42 Box $28.99
http://www.amazon.com/dp/B00HF7RFSG/ref=wl_it_dp_o_pC_nS_ttl?_encoding=UTF8&colid=3TYG0WH7KQ2A9&coliid=I25GFHQLB5LDWA
Rowntree’s Fruit Pastilles Roll, 1.8-Ounce
(Pack of 12)$5.50
http://www.amazon.com/dp/B004727U2S/ref=wl_it_dp_o_pd_nS_ttl?_encoding=UTF8&colid=3TYG0WH7KQ2A9&coliid=I3DOEUST8JVUPQ
Cadbury Roses Tin 850g $22.49
http://www.amazon.com/dp/B005UO19LU/ref=wl_it_dp_o_pC_nS_ttl?_encoding=UTF8&colid=3TYG0WH7KQ2A9&coliid=I1OQ9337QLRE2K
My morale is high.
Up to almost 10% of our nations counties constituted.
https://www.nationallibertyalliance.org/user/register
Spring has sprung.
Did a bit of pruning today, thought about the vine and the branches.
Scout out.
This is the time to sell if you can.
I wonder how mortgages will play out… I am still 27 years away from fully paying off my mortgage. Which is unfortunate… because I can barely make the payment each month now in this current economy. What happens after the market crashes again?
Will they seize everyone’s home who can’t afford it?
Will they just say “fuck it” and bankrupt on all homes?
Honestly I’m more worried about my neighbors being the psychopaths they are than the banks.
I expect them to take over the homes and rent them out to the owners.
I thought that was what property taxes were…rent payments.
Anon,
Some more deserving illegal alien will be living in it courtesy of the govt.. maybe they will let you stay on as the gardener.
Serves everyone right. Greed is a bitch huh? I let my house go and I watched as they covered all of its problems cosmetically. When it was mine it was worth 25,000 after this guy bought it and covered it up its estimated at 80,000…buaHAHAHAHAHA. The original roof is still under the kitchen addon, the wall of the kitchen on the South isn’t connected to the house, The well needed re-drilled…they didn’t, the Roofing everywhere needs replaced, the foundation above the well is 2 inches thick and cracked and is the floor of one of the bedrooms, each stud in the supporting wall of the kitchen was cut halfway through to run pipes in the wall the length of the house, the Bathtub is sitting on the actual ground, not one stud in the entire house is at 16 or 32. Some of the insulation in the East side of the house is newspaper from the 60’s the wiring is also from the 60’s. Last and certainly not least the house leaks air because the original rotting wood plank siding was covered by the new siding. 80k my ass…the funny part is everyone here knows what wrong with it, it will never sell unless they con someone out of town. It’s just greed.
The vast majority of home buyers are hedge funds and foreigners.
Banks aren’t lending money for home mortgages right now for the most part. Credit is very hard to get right now.
There’s going to be another collapse of the housing market.
And of course, the big banks are holding large numbers of properties off the market to prevent that collapse. In exchange, the Fed lends them large amounts of money that they use to buy treasuries. They make most of their money that way.
The law was changed so that the big banks don’t have to list those toxic assets on their balance sheets and show them at current market prices. Any other publicly traded corporation would required to do that if their inventory lost enough value.
the other buyers are corporations and those dam rich that are just turning them into rentals, but even some of those corporations have been getting out; they know we’re about at the end of the rope on the country’s credit card.
another thing making it harder is our brilliant elected offcials changed home loans to work off debt percentages after 2008, so if you have over 43% debt; you cant buy a house and since people’s incomes have actually gone down, their credit cards balances have increased, most dont have more than $2,000 in savings; most people cant buy a house; even if they have a steady job.
BARN , watch as the banks turn the homes they are holding over to the government to house people without jobs, illegals or “oppressed minorities”.
Watch as the fed spends billions to fix them all up and hand em out . The next great stimulus , creating jobs fixing up these homes useing union labor , so the socialist government can house its minions .
Another “great society” work program, sounds familiar….
Hammerhead
I’m sure you’ve heard the car sales ad that says
“no matter what your credit rating, if you have
a job that pays 10 bucks an hour and have 39 bucks
down, we’ll put you in an automobile, guaranteed”.
I wonder what kind of ‘nuts in a vise’ contract
that one consists of, I shudder to even think.
OUTWEST, I have seen an ad like that, not sure its the same one but …….
My brother in law called them , they brought a car over to his house to look at, with THREE BIG DUDES !
He thought he was in the fight of his life just not to sign papers on that POS !
LOL , big lesson learned .
OutWest, are you talking about those “we tote the note” car lots? A lot of those car lots are ripoffs. That’s another reason I always used cash to get a car.
A little sawdust in the engine to temporarily hide the noisy main, a few splices here and there, a little camber adjustment and different tires to hide upper control arm issues or a bent frame, and some foil in the fuse box to hide wiring issues. Extra paint over the bondo and a hot battery to hide the charging problems…yeah, I don’t miss used car lots at all.
…and they don’t miss me at all either.
Car dealers around here are desperate to sell. We got a contest ad from a dealer, so we went and eventually got our $5 Wal-Mart gift card. We are not in the market now, but the guy at the dealer was going to give us such a deal. I can’t remember the model car, but he was going to sell us a 2014 car for $119 per month. But wait, they were going to delay payments for 3 months. Then he said that they would give us a $2,500 check for our POS trade-in, and we could use that to pay 12 more months of payments. So we wouldn’t have to pay anything down or pay any payments for 15 months. Of course, then we would be in debt for another 6 years.
Hammer:
Oppressed minority.
White
Christian
Male
Heterosexual
Over 60
balding
not over weight
Happily Married
I think that covers it.
Sgt.
I agree with all but one Sarge. Over 60. I am over 35, all the others cover me. I am feeling pretty damn oppressed and minority right about now.
OH DALE! yer confused , YOU are blessed with white privilage ! You got nuthin to bitch about.
White christians ARE the problem .
The reverant Wright told me so.
SGT DALE: Just fully described what “Best of the Goyims” means!!!…IE: as in “Kill even the best of the gentile goyims”
Sarge, I fit the criteria except for I’m not balding, I just turned 57, and I’m a widower. That covers it for me. MOLON LABE braveheart
Thats a scary though I had never considered hammerhead. Sounds extremely plausible though.
Its already happening Outlaw. Pay attention to the lifestyles of the minorities in your area and you will see it. TPTB are doing their best to keep it quite but a little effort on your part will reveal the truth. I just exposed this to my wife recently and she was shocked. If you look closely at the new tax return forms and fill them out as if your a minority you may be surprised in that arena as well.
Hispanics are now the majority in California.That makes all other “races”the minorities.Those people should take advantage of the special privileges afforded to minorities.
barncat, the banks wouldn’t lend to me back in the 90s when we had a good economy, I had all the down payment I needed for a bugout property I was trying to buy, and I even had a co-signer with a perfect credit history and was debt-free at the time. I’m going to look into those tax lien auctions for a place. That’s really my only hope of getting anything.
RENAGAGE – look at HUD listings .
Find a realtor that is HUD approved .
Then offer the bank 1/2 asking price.
They will counter , just add 2 grand , done .
Hint : HUD drops prices every month on most listing by at least 3000.00 . Good luck !
Read an article early this mourning that China is now having a housing market sell off. Most of the higher class players who bought second home in other countries and islands are dumping them due to slowdown. If you’re going to buy a home NOW is a good time due to lower interest rates. The rates will spike again very soon. Best of luck.
What, in China? Buy a home in China?
Heh maybe not a half bad idea… I guess… although the idea of going to jail for smack talking the government (ok, going to a dark hole in the ground never to be seen again except in zip-lock bags)… yeah that lacks appeal.
Actually PO’d Patriot, it is best to wait until interest rates spike. Housing pricing will then drop – a LOT.
Patrick.net the housing expert, explains better than I.
How timely, this article is dated today.
10 Reasons It’s A Terrible Time To Buy An Expensive House
http://patrick.net/housing/crash1.html
Noo offense PO’d.
Put that energy to use.
Why?
http://www.nationallibertyalliance.org/common-law
How?
https://www.nationallibertyalliance.org/user/register
Thank you to those on this site that are participating.
patrick’s housing page is the MOST important thing you will EVER read! don’t get stuck with an expensive(TODAYS PRICES) house!
I think the so called recovery has been a shadow recovery, just for the rich. Eventually, all the turnip’s will have been picked or dried up.
In the eyes of MSM, move along, because there is nothing to see here. All is green shoots and happy days are here again.
The question on everyone’s mind is when will the façade slip and reality shows it’s ugliness of what truly is going on??
So many still have no clue or truly do not want to believe that things are not as good as the propaganda spewing on television.
I’m making less on my paycheck and the cost of living is a joke in my opinion. It’s actually an insult to those that are working and flipping the bill for those that never plan on trying to find a job. Maybe, one day all those EBT cards will be deactivated, then reality will finally set in, but by then it will be to late.
Tangible items and skills will be worth the new norm, because things can only go on for so long. Losing a grip on society is something this country will experience sometime, but when?
B Aware, B Awake, B Alive
No wonder why Cabelas are offering such a vast array of new model family tents. They are the new American split level. And they know it. Ha-Ha-Ha.
Sign on a Sporting Goods store:
“Now, is the winter of our discount tents.”
STEVE, was that didcount tents or discontent ?
LMAO
WHAT HAPPENS TO UNSECURED DEPT (CREDIT CARDS) IN A COLLAPSE?
You make guitar picks out of them.
That’s what my father did with the cards that the oil companies used to send out in the mail back in the 1960s until the court ruled that the cards were a gift and you could charge all you want without having to pay it back.
Forgive me off topic: Those who bow to Da Ruler will pay dearly for their beliefs and positively “Don’t Have A Clue” as to what is coming.
They are to busy F–king TEXTING which I think is all part of the plan also.
They came up with the PERFECT tool to control the people and whoda ever thunk that it would be a little electronic box that they all believe they simply CANNOT LIVE without?
Hmmmm, they did it up right .
We’re sunk BUT, we CAN leave our presence here for them to consider on our way out & HOPEFULLY Open the Eyes of some of the Sheeple! A friend.
NOMI should we give!
GOOD ONE, river rat!
http://www.zerohedge.com/news/2014-03-19/music-just-ended-wealthy-chinese-are-liquidating-offshore-luxury-homes-scramble-cash
Really? They are still blaming everything on THE WEATHER?!?!
Sadly yes they are. I know MY company sure is. It’s like a total farce to watch.
This is just more of Round 1.
Round 1 never ended. They just plastered wallpaper and BS press releases all over it.
Can’t really argue with that.
I am buying my 3rd house tomorrow. Its my second investment property. I am currently 27 years old. I went to a college i could afford. Worked the whole way through college paid off all of my debt 6 months after i graduated and started my life with my wife. We both work long hard hours at any jobs we can. We save every penny and are setting up for our futures. And i am not one bit afraid of the market because if the economy crashes we are all in deep shit so it really doesn’t matter what you have because if they want they can have it. Work hard and plan out your life and you will find ways to get what you want. Anything is possible. I am tired of hearing people with the wow is be bull shit. I don’t see any job as below me and i work for what i have. I have 2 degrees and if there is a job scrubbing toilets or waiting tables i still do them because they pay the bills. People are too lazy today and don’t want to work for a thing.
@ Azam
I agree that people don’t want to work those kinds of jobs, but for a different reason.
They don’t want to be looked down upon the way THEY look down upon people who do work as you are describing.
Ain’t that a bitch?
I hear u. I say screw them. I am happier knowing i am not a drain on society and i am making a better life for myself and my family.
I sit here knowing my parents had to refinance there home just to pay for my fathers failed business. He was hit very hard by the bad economy. They now have a 197,000 mortgage and they are in there mid 50’s. Its a bad time in life to have that big of a mortgage.
Personally i wish i could help them but when people are old stubborn and don’t see eye to eye with you when it comes to business you cant help them. Especially when they don’t understand how credit cards work and how much cash advances can hurt you.
I scrubbed toilets to get through college. It worked and paid the bills.
I don’t see any point in buying an extra house unless it’s a bugout location. Property will lose value after the crash. After hyperinflation and most Americans die it property will be impossible to sell.
BUY , BUY ,BUY farmland if you can hold for a few years.
Its tough finding rental ground , buy land , then lease.
After tomorrow I will have a duplex and a house with rental income. That means I divided my risk between 3 units. This means I don’t have to worry if one unit is empty and even if I loose my job I still have money that pays the mortgage. Buying property and working for your self is the only way to survive. Anyway with rental properties. You get to make a lot of write offs and get to purchase supplies and tools as a write off. Aka preps. Chainsaw generator hand tools fuel ect. I would like to build up to land further out in the suburbs than I have now but you have to plan and build your self to get there. At this point in a couple of years my rentals will pay for the land I want to move to retire at some day. It’s all in the plans.
Hey, just found out the United States Gov. has only $206Bn on reserves. Seems to me like a default should be happening??
B Aware, B Awake, B Alive
That kinda money ($206 b)is good for about half a day.
Defualt IS happening !
“Couple this with the Federal Reserve now indicating that they are pulling back on $85 billion in monthly market stimulus, and you can probably guess where this is headed next.”
This is just a part of it. Also, we have had inflation in food prices and material things like clothes. There’s going to be even higher premiums and costs associated with medicine next year as obamacare keeps wrecking the medical system(even though its no on permanent waiver) and its more than likely that trade and currency wars start as obama has shown with syria and ukraine that you can basically do anything you want to the usa and he isnt going to do anything more than make a speech.
The usa has been putting itself into where it is now from decades of ineptness and lack of vision, but these next 3 years got a real chance of being really bad and mostly becuase of obama’s actions and inactions in his first 5 years.
There not cutting back on anything lena, they just keep shuffling the digits around making everyone that believes their BS, they are actually down-sizing. In the end the truth will set you free!
B Aware, B Awake, B Alive
I just found packages of new socks and new underwear I forgot about–
Christmas!!! 🙂
Holey Moley!
LOL JAY JAY , Better chase the moths outta those biscuit covers !
This hits home (funny).Only preppers find this kind of stuff, a year or two later when cleaning out a cabinet, container, drawer…oh look, i forgot I bought these extra socks.
I laugh because 10 years ago I sorta overdid it on tinfoil…no really (not for hats) and I’m STILL using that tinfoil…and have you seen the price of a roll of it lately?
precious METAL, justme!
Hear the one about the Pollock that walked into the Bar and the bartender said, Ilean was in here looking for you. And the Pollock said Ilean who, and the bartender said I lean over and you can kiss my ass you dumb Pollock. This went on for 4 or 5 days and then the Pollock was talking to a friend, and he said I’m getting tired of that bartender telling me every time I go in there, that Ilean was looking for me and when I say Ilean who, he says I lean over and you can kiss my as you dumb Pollock. So his friend says, the next time you go in ask the bartender if Bob has been in, and when the bartender asks Bob who, you say bobup and kiss my ass you dumb bartender. The Pollock says good idea, and the next day he goes in the bar and right at the door he ask the bartender, has Bob been in, and the bartender says yeah, he left with Ilean. And the Pollock say Ilean who.—If you don’t like to use the word Pollock, just interchange it with CUZ, he won’t mind.
NGIC, you don’t even make a decent troll, you’re just a moron.
YA YA YA , Sign above urinal :
Dont take the pink mints , save them for the pollacks.
couple of pollacks were out deer hunting, and one mistakenly shoots the other one. so he rushes him to the hospital. he waits in the waiting room and finally, the doctor comes out. “how is he, doctor”…doc says, “wellll, he probly would have LIVED if you hadn’t GUTTED him!”
Pollock don’t have feet to walk in a bar with, they’re fish.
I was just going to write that he didn’t spell “Polack” properly.
Pollock is also a surname. Check history for eastern NC. Thomas Pollock, Cullen Pollock, etc.
Out here in the S.F Bay area in the United Socialist State of America, things are booming, so they say. Very soon it will happen here. Unfortunately I am here and telling people to beware. But they don’t listen as they are in the other bubble.
Just like the Stock Market, the housing market bubble is also built on LIES and speculation. Both are manipulated as all get out as well. One thing that people seem to forget is that with every war, crisis and financial downturn many, many people are going to lose everything…and some are going to gain everything.
This happens prior to very major market crash, war and disaster of epic proportions without fail. Look back at history you will see I’m correct.
Certain people on the INSIDE know what’s coming…and prepare accordingly to reap a windfall. The guy OUTSIDE and at the bottom of the ladder however, finds out last and is left holding the bill. You don’t want to be THAT guy, if you have money in savings, 401k and retirement funds you better have your game face on and plan B ready to go…you are almost out of time! The smart people already got out of dodge, long ago.
hence a LOT of dead bankers.
In 1970 a house 1800 square feet was 22000 in 1997 was 60000, and now is 100,000. You have to be crazy to buy a house knowing that it is never going to sell for what you pay. 70% over valued and will not hold its value through what comes. Deflation is showing its ugly head.
UHHH , I’m breakin ground on an empty nester.
1330 sq ft , finished basement. modest ameneties.
I would call it a “super saver”.
Its gonna roll in at $160,000.00 .
This is a cash buyer , the home appraises for $104,000.00.
So these folks are upside down .
This is the last stand for them , they dont care , but can you imagine trying to get a mortgage with these numbers ?
No land?
160K for 1300 sf on a lot?
WOW, that seems crazy to me.
They own the land already.
The other factor contributing to this is that home prices were never allowed to correct back to a real market level. The Fed and regime have done everything they can to keep home prices artificially high. This also makes it harder for first time homebuyers to afford a home.
YES , The government got in the way once again.
They should have let ALL the markets naturally correct and we would be seeing dramatic improvement now instead of lookin at all this double digit doom .
“I’m from the government and i’m here to help” . RUN !
If everyone in the country fought every traffic ticket the courts would implode
If everyone stopped buying china garb….
If everyone bought gas on weekends ….
If everyone in the country called their senator/house member on wed each week, but they will never do any of that
Divided we fall
Were very divided, not r and d divided
100 splinter groups, hell there more united in iraq, they have 4
Kurds,
Suni sheite. Alqueda
I wouldnt trust anything the Natl Ass of Realtors said. Theyre only looking out for their #1self. They fudge numbers all the time. How stacked is the shadow inventory these days?
Not only will home prices drop as banks finally have to let go of stock but banks will need yet again another bailout,wonder who is on the hook for that?!A example,say a home has a loan of 100 bucks,as long as on books a 100 bucks bank in theory has a 100 dollar asset,when in reality that asset is sold for say 60 bucks whatever,they now have a shortage on their books of 40 dollars,ain’t banking and it’s bullshit fun?!
I am in the UK and the property market is absolutely booming. People are renovating at a furious pace. I don’t know where the money is coming from but people here have it.
Property prices are now well above where they were before the crash. New buildings are going up all over the place. And a good thing, most of the new residents are from Asia, rather than the blotchy-skinned, crumbling-teethed, flatulent and indebted locals.
Like I said before, a bifurcation is underway and is sorting out the wheat from the chaff.
Also in the UK.
I honestly think our current boom is what’s known as a “dead cat bounce” that’s gonna result in tears for a LOT of ordinary people in the short-medium term. In other words the banksters are throwing out their nets to trap any remaining suckers before they reel in their final catch for good.
Our government has been deliberately manipulating the housing market from too many angles for me to feel comfortable as we all know by now politicians are merely the puppets of the higher ups. Only sensible way to buy property in the UK now is to purchase cash for freehold, anything else is gonna cost you far more than mere money when the banksters come to collect, especially in the big cities of England. (Wales is more realistically priced, & Scotland may not even be part of the UK by year’s en, in NI you can still own a handgun so that tells it’s own tale to preppers).
I’m not letting greed suck me in, but sold up in the autumn, ditched the mortgage, & moved to a cheaper, less highly populated part of the country that attempts to cling onto some semblance of a remnant of an old fashioned community. I accept that I’m NOT one of the chosen ones, but rather part of the mass of potential victims, and I’m planning accordingly.
The era of the secure white collar job accessed via a college education & located in a city is over for most of us. Unless you have the right connections to the elite then it’s time to remember what life was like for the masses pre-WW1, as that’s the world our children today will face as adults. As one historical example – rickets was common in London children & adult workers at that time, but fairly rare amongst those who could grow even a small garden & harvest wild food from the hedgerows.
People, People, People!!!!
This just what the the Washington elite want.
The banks to hold the mortgages.
Then they pop the bubble, again!!!
The Government bailes the banks out, again!!!
The banks use the houses and property for collateral.
They (the banks) FAIL to meet there obligations to the government.
Then the government owns the houses and properties now.
Then they will tell you where you can or can not live.
JUST ANOTHER WAY TO CONTROL THE MASSES
They have restricted free travel. Just go to any airport.
They are already telling us what Doctors we can or can not see.
They are telling us what foods we should or should not eat.
They are trying to tell us if we can not defend ourselves.
They are forcing our kids and grandkids into a debt that can not be paid off.
They are trying to stop us Christians from worshipping freely and openly.
They have poisoned our food supplies with GMO’s so we have to depend on them for food.
They have put a band on collecting Rain water in some parts of the country.
They have stopped the free flow of water to the farmers and ranches. For some little fish.
They have put a band on home gardening in some areas.
DO I NEED TO SAY ANY MORE.
WE ARE NO LONGER A FREE REPUBLIC.
IT IS TIME FOR THE PENDULUM TO START TO SWING THE OTHER WAY.
FREEDOM IS CALLING AND THE ANSWER IS COMING VERY SOME.
IT’S TIME TO CHOOSE. FIGHT OR FLIGHT. THE TIME IS AT HAND.
I’m a prepper and proud of it.
I bet you can guess what I’m what way I’m leaning.
S.T.S.F.P. N.R N.S. N.REB
THE LAST LINE IS; I BET YOU CAN GUESS WHAT WAY I’M LEANING, OOPS
Sorry for the long rant, but I’m Da%& tired of seeing this great nation being ruined by a self proclamed king.
And seeing the the debt that my Kids and Grandkids are being saddled with.
You can see 500 miles away where this country is going as a society and nation if you have 3 brain cells in your damn head. The question I ask myself; and the one that bothers me the most is;” WHY “? WHY are SO MANY Americans completely clueless about whats going on; and what could potentially happen in the future? WHY?
Dave:
I’m convinced it’s fluoride in the water. Before you scoff…Hitler put fluoride in the water to keep the people in the concentration camps “docile and stupid.” America started to fluoride in the water in the late ’50’s or thereabouts. Look up what fluoride in the water does to a body and brain. Everything they told us about the health benefits were a lie….go figure.
Many other countries have outlawed fluoridated water.
Makes perfect sense to me….and it explains a lot about why people are just soooooo oblivious and have lost all critical thinking skills.
PKLL
Maybe that’s why I did well in school. I never had fluoride. We had our own well.
So Which is it thats Truth? #1 Hitler used Floruide in water to Keep camper folks docile?
OR…Hitler put campers into camps to Mass Kill them All as fast as possible? Because one cannot Have it Both ways and still remain truth.
Them Guys: Uhm…..yes you can have it both ways and still remain the truth. My point was that he put the fluoride into the water to keep them docile and stupid until he could kill them off as fast as possible.
I don’t see a problem with that.
PKLL
leave me alone, dave! i got to send another text!
DAVE: Do you mean folks that know and warn others to Never trust nor believe anything told by fed govnt and Msm tv and newspapers news? Yet those very same folks STILl Trust and Believe the very Same fed govnt and MSM Tv , newspapers, and Hollywood movies when the issue is about WWII-germany-Nazis-SIX Million jews, and the HoloHoax?
Do Not ever trust nor believe anything from fed govnt or MSM’s…EXCEPT!! Whatever they say of the above issues…Because Thats the ONLY time they both speak 100% factual Truth is when its Those certain issues…
Indeed one wonders whats wrong with americans eh.
Don’t be so silly. The Government has repeatedly told us the we’re are 5-6 years into the recovery, so why don’t you believe them. They are better than you, smarter than you and wiser than you. Pull your forelock, bow down and kiss the feet of your masters and repeat after me, “we are in a recovery, we are in a recovery….”
How about a joke????
What Is Butt Dust??
What, you ask, is ‘Butt dust’? What do you do or say, when an innocent child asks you something so innocent and they are so serious? Read on and you’ll discover the joy in it! These have to be original and genuine. No adult is this creative!!
J A CK (age 3)was watching his Mom breast-feeding his new baby sister… A fter a while he asked: ‘Mom why have you got two? Is one for hot and one for cold milk?’
MEL A NIE (age 5)asked her Granny how old she was. Granny replied she was so old she didn’t remember any more. Melanie said, ‘If you don’t remember you must look in the back of your panties. Mine say five to six.’
STEVEN (age 3)hugged and kissed his Mom good night. ‘I love you so much that when you die I’m going to bury you outside my bedroom window.’
BRITT A NY (age 4)had an ear ache and wanted a pain killer. She tried in vain to take the lid off the bottle. Seeing her frustration, her Mom explained it was a child-proof cap and she’d have to open it for her. Eyes wide with wonder, the little girl asked: ‘How does it know it’s me?’
SUS A N (age 4)was drinking juice when she got the hiccups. ‘Please don’t give me this juice again,’ she said, ‘It makes my teeth cough.’
DJ (age 4)stepped onto the bathroom scale and asked: ‘How much do I cost?’
CLINTON (age 5) was in his bedroom looking worried When his Mom asked what was troubling him, he replied, ‘I don’t know what’ll happen with this bed when I get married. How will my wife fit in it?’
M A RC (age 4) was engrossed in a young couple that were hugging and kissing in a restaurant. Without taking his eyes off them, he asked his dad: ‘Why is he whispering in her mouth?’
T A MMY(age 4) was with her mother when they met an elderly, rather wrinkled woman her Mom knew. Tammy looked at her for a while and then asked, ‘Why doesn’t your skin fit your face?’
J A MES (age 4)was listening to a Bible story. His dad read: ‘The man named Lot was warned to take his wife and flee out of the city but his wife looked back and was turned to salt.’ Concerned, James asked: ‘What happened to the flea?’
The Sermon I think this Mom will never forget….
This particular Sunday sermon…’Dear Lord,’ the minister began, with arms extended toward heaven and a rapturous look on his upturned face. ‘Without you, we are but dust….’ He would have continued but at that moment my very obedient daughter who was listening leaned over to me and asked quite audibly in her shrill little four year old girl voice, ‘Mom, what is butt dust?’
Eppe:
You rascal you done it again. Thanks I needed a good laugh. I can’t wait to tell our minister the butt dust one. Thanks again!;-)
S.T.S.F.P. N.R. N.S. N. REB
Son (age 10) — I bought a gallon of milk that said Vitamin D Milk on the label…son refused to drink because it wasn’t pasturized milk. I replied, all milk is pasturized. It just says Vitamin D because milk has Vitamin D in it.
Son replied, no it’s not, mom, yes it is. Back and forth.
Mom says, do you know what pasturization of milk means?
Son replies, yes, it means the cows are out on pasture…I laughed so hard. He was a city kid at the time (we moved rural later).
my best friend a few years ago told me this one the day it happened to him…true story…one day as he was pulling onto Bear Valley Road (the main road in our town)with his 4 year old son, the kid looks up at him and says “daddy, is this the road with all the assholes on it?”…..the “kid” is now 20 years old and i still laugh every damn time i see him.
For starters…
I prepped up on education and a bunker of computer books.
I have real skills the large companies pay for.
Someone has to run their data.
So…No worries. We run the company.
The decision makers are in our back pockets.
They don’t mess with their plumbers..else the shit backs up and affects their job.
With that in place….
I work non stop…around the clock. Blasting away.
This buys me security and so on.
Yeah, I’m all prepped up like you guys.
I’ve noticed that I’m just personally loving this bad economy.
I can always get a seat at the bar.
All the chicks are looking for a guy that has a nice job.
Too many MILFs to count! Love it.
Let it all collapse…it only keeps getting better.
Seems all of America forgot to be on the bleeding edge and all bought into the 40 hour a week slave hours. Shit..I am always on and it’s a lifestyle.
You all said it.. No factories… No economy.
The next thing we’ll see the market suck.
Too many boomers will be cashing out to live on their funds.
They are too old to get a job.
I keep stacking silver.
Have many safes and hiding places for it.
Document it in safe place.
Summary …
Read. Cancel TV and your cell phone.
You don’t need them.
Tons of stuff online for you.
There is no “collapses”….it’s an engineered decline…spread over time…done by the commies.
My solution… If you are in camp….and there’s a bear… don’t be the guy sleeping or the slowest one. Actually..be the guy waiting for the bear and shoot the fucker between the eyes..then eat well.
I used to bum out about the economy..
Now…..I’m swimming in a sea of lazy fat boomers who forgot how to learn and read.
I predict the govt. will create these new high tech enterprise zones.
They will basically be the agenda 21 cities of tomorrow.
No guns, no bbq, no cars.
You ride to work and have many limits.
It will be a real gas watching all the ghetto folks battle eachother when the govt. food trucks come.
Personally I think the elite are planning a food collapse.
How? Deployed by Chemtrails…. Kill off the bees and also spread crop fungus.
Monsanto will happily doctor their seeds to have a global crop failure.
BAM. 3 billion dead. Just as the food gets fubar…then they will get everyone in poor nutrition and then out comes the engineered virus.
They don’t want wars anymore..this messes up the real estate..and the fed.s now own it all.
Yeah… too many people are going to do stupid things.
Just look at fukashima. Nuke plants in a fault zone, on the coast where they got wacked. PROOF that the more education you get…you forget about common sense.
I read about one company that backed up their data from 911 tower 1 to tower 2.
Yeah… not very smart.
I predict that we’ll see the pentagon revolt and some generals will take over the United States when they try and bring in UN Peacekeepers from Russia and China.
Yes, I know they are already here.
Go read the book the 4th turning… things go back and fourth and humanity responds i the same knee jerk way.
The way I see it… I’m 52. So.. I’ll enjoy things…listen to the ipod.
Flirt with the girls. Get laid plenty. Crank on the data systems
and watch it all go down.
Then when it’s all crap and the restart goes on.. I’ll cash in the silver
for rental property and rent to all the folks that lost their homes.
I am a pure capitalist.
We always win in the end.
We read, think, plot, scheme, conspire and make sure our position is sound.
I was the guy hitting on the second best looking gal in the group and always got tail.
Quite frankly… Obama has created a glorious mess I’m making tons of money on.
I hope his wife runs. ha.
As for the United States. Shit…you were never free.
You just thought you were.
If you want the country back…Here’s what needs to be done.
1. Ban all imports for the next decade.
Over night factories will spring up.
2. We all know this.. end the federal Reserve sys. 40% of your federal taxes go to the bankers and we all know what country they are from you goymes.
3. End welfare. Make them stand in a soup line. They will discover it sucks and decide to go get a job.
4. Don’t let pot be legal. I’ve seen too many lives go nowhere.
5. Legalize prostitution. Hey…That would be great.. Go to a car wash… you get your car details, have a sub, coffee and get a hummer. Fewer divorces. Dang..it’s just sex…make it safe and stop treating it like it’s some great satan thing. Then…all the taxes from that go into the education sys.
6. End property tax.
7. Pass laws on productivity. Automate the shit out of everything and create more knowledge workers and folks to service robots that create things. High paying tech jobs.
8. Colonize the moon. Turn it into a glass dome. Fuck mars..too far away. Do you know how many jobs would be created? Then…when you have this down..then go for mars. Put some space stations between the planets.
9. Create a legal Holiday for men… and get a better name than “Steak and blowjob day” 3/14. Everyone kept telling me it was pie day. No..it’s eat steak, and unload day.
10. Your item here…
RE: Obama….ah…don’t worry about him…he’s fade in to history.
Yeah..he did plenty of damage and the first black guy to be pres and the first guy to bring down the US. Nice job “brother”.
LSM just reported it could be, might be, possibly, maybe da plane. Oh no its a turd, a 30 foot turd. Maybe next time now go back to sleep sheeple the kardashi’s will be on shortly.
The only “market” that is really booming and adding more and more people to it each day is the welfare market. BO skewed numbers of economic recovery are world famous horse crap.
Warning: Off Topic
I tried to log on to the blog. I completed the registring with username and password. First it welcomes me,then says I have to regiter. I do it again,same thing. I logged on three times and keeps going to tell me to register. What gives? Dosen’t anything work right anymore??
Housing problem started when Barney Frank et al in Congress decieded that home ownership was a right. They told the banks to start lending to ‘minorities’ or they will be denied permission to spread branches. So,this is where “no down payment” “no credit check” etc stated. This is why people earning $8 an hour were taking out loans. Suddenly when the “no interest” grace expired and suddenly these $8 an hour workers were seeing almost triple monthly payments,then they started crying about those nasty bankers.So,the govt stepped in again and told the banks to ‘fix it’ so these people who should never have taken out these loans in the first place can stay in the homes they could not afford in the first place. Just sayin’
I posted something similar on Smaulgld.com recently- “Two Charts that Illustrate why the Housing Recovery is a Farce”:
I have the low first time home buyer chart but also a chart showing the all time low homebuilding activity:
http://smaulgld.com/why-the-housing-recovery-is-a-farce-illustrated-by-two-charts/
Just try to buy a house in the SF Bay area. This article made me laugh for a second, until I realized the enormity of the bubble I’m living in…I’m in the market to buy, and have watched properties get bid up 50K over ask on the first day. Welcome back, 2007.
And today I just saw a TV commercial of US Property Investment Seminar. It clearly claims that now is the right time to buy to reap profits in no time.
… LOL …
Consideration to a declining market is also the result of the ObamaCare deadline. Many folks do not want to be classified in a higher income bracket with a new house. The housing market might rise a bit, but not much….then will go flat. This is part of the total collapse…all by design.
I am a Realtor and have been working in Real Estate for the past 4 years. The notion that now is not a good time to buy is bad advice. The chart you posted is specious at best and you do nothing to explain the data or what it represents. What is a “Progression of First Time US Homebuyers” exactly?
The real indicator of whether its a good time to buy for qualified first time home buyers is the ratio of comparable rent. If you are renting an apartment for $1100 per month and you can get into a $130k house for the same price you’re paying in rent and put your monthly payment into building equity instead of just borrowing a place to live for a month, it’s a no-brainer.
Also, there are a LOT of people entering back into the market that had to short sell for one reason or another 2-5 years ago that can now qualify again for a mortgage. They are not considered first time buyers, but they are a large percentage of the market.
National home prices have risen nationally year over year for the past 3 years in a row. There are a lot fewer short sales and foreclosures on the market competing with the legitimate sellers, and there is an absence of GOOD inventory that buyers want to buy.
While I certainly wouldn’t suggest that we are going to see any kind of “recovery” in the RE market to where prices were from 2002-2006, the idea that we’re due for another drop is simply misguided. Even if we were at 20% unemployment, that’s still 80% of the population working, earning income, paying bills, and paying to live somewhere. They aren’t making more land and they aren’t building a lot of new houses like they were.
Supply and demand. People want to live in houses and they will pay to own one. Buying is not for everyone and doing so from an investment perspective is not always smart, but from a first time buyer point of view it’s as good a time to buy as there has been in a decade.