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Post by unlawflcombatnt on Dec 12, 2012 12:49:41 GMT -6
from Ritholtz.com via Patrick.net Falling Incomes, High Unemployment, Rising Taxes and Tight Credit = Housing Recovery?Dec 10, 2012 by Barry Ritholtz " Jonathan Miller shows us the above chart (via RealtyTrak) and ask the question: How does flat to falling incomes, high unemployment, rising taxes and tight credit = housing recovery?
The short answer is a combination of record low mortgage rates and held back distressed activity. Following a weak 2011, year-over-year comparisons also look good.
The combination goosed housing sales and prices. The question for the housing bulls is, can it continue?
The answer, at least from this (personally long) housing bear is low rates in 2013 will confront rising foreclosure sales. That battle — plus the state of the consumer as outlined by Jonathan — will determine whether this year’s improvement in housing will continue next year....."
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Post by jeffolie on Dec 13, 2012 10:57:45 GMT -6
from Ritholtz.com via Patrick.net Falling Incomes, High Unemployment, Rising Taxes and Tight Credit = Housing Recovery?Dec 10, 2012 by Barry Ritholtz " Jonathan Miller shows us the above chart (via RealtyTrak) and ask the question: How does flat to falling incomes, high unemployment, rising taxes and tight credit = housing recovery?
The short answer is a combination of record low mortgage rates and held back distressed activity. Following a weak 2011, year-over-year comparisons also look good.
The combination goosed housing sales and prices. The question for the housing bulls is, can it continue?
The answer, at least from this (personally long) housing bear is low rates in 2013 will confront rising foreclosure sales. That battle — plus the state of the consumer as outlined by Jonathan — will determine whether this year’s improvement in housing will continue next year....." A better response is: $30.000 profit per flipped house Very well politically connected, Blackrock Group now has become a Titan of house flipping at a monthly rate in the low 5 digits ... tens of thousands of houses flipped per month at $30K profit each by Blackrock Group and also American Home Corporation Huge flipping profits has all but eliminated the readily available supply of bottom end houses in locations they can readily be sold as investment vehicles for those with cash seeking to gain higher returns than the near zero interest rates earned in CDs and savings accounts by becoming landlords of single family home rentals that can be rehabbed for flipping ... this has created the Housing Recovery
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Post by unlawflcombatnt on Dec 13, 2012 12:55:15 GMT -6
And flipping houses doesn't create a nickel's worth of real wealth, no matter how many homes are flipped.
It just upwardly re-distributes already existing wealth to the more affluent from the less affluent.
Homes become less affordable to the less affluent due to the upward price pressure created, and become more profitable to sell by the more affluent who own them.
Everything the Fed had done has helped redistribute wealth upward from the less affluent to the more affluent.
And if the speculative purchases of the more affluent fail, the Fed and the Government bail them out.
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