Post by jeffolie on Sept 21, 2013 8:08:23 GMT -6
Home prices: owner occupied down, Investors' up inequality
my jeffolie view:
inequality: The rich Type 1 consumer investor got richer while the most common American suffered lower home equity.
Blackstone investors continue to enjoy benefits from crony capitalism because of access to the lowest cost money and cash inflows for buying homes for "all cash". Banks cheat the public and give advantage to Blackstone, et al with the best access to purchase the lowest priced distressed homes for purposes of reducing the banks non performing loans without damaging the banks balance sheets ... the public remains shut out from this 1st come access and lowest money costs, so the public relatively under performs Investors such as Billion Dollar Blackstone with inside benefits.
The working public's existing homes rely on move up buyers and new family formations to buy their homes compared to the stock of homes sold to Blackstone, et al investors buying distressed homes at lower prices. The working public's existing homes are in decent or good shape thus priced significantly higher than the distress homes purchased by Blackstone, et al. Higher priced homes suffer a lack of new buyers with 2 good incomes to get mortgages compared to the abundant cash available to Blackstone, et al. WHY? BECAUSE newly created jobs remain in low paid industries and 77% part time.
The working public's existing owner occupied homes continuous fall in price. The Investor purchased homes remained higher but this only lasts as long as the profits comparison to other investments give investors good motivation.
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Median Housing Value Still Falling
According to the 2012 American Community Survey (ACS), the median value of owner-occupied homes in the United States is $171,900. Nationally, median housing value has declined by a substantial 20 percent since its 2007 peak of $215,152 (in 2012 dollars). One factor behind the ongoing decline in home values is the drop in the homeownership rate as younger adults opt to rent rather than buy. The ACS data show that the nation's homeownership rate fell from 67.2 percent in 2007 to 63.9 percent in 2012.
Median housing value, 2007 to 2012 (in 2012 dollars)
2012: $171,900
2011: $177,193
2010: $189,419
2009: $198,198
2008: $210,716
2007: $215,152
Source: Census Bureau, American Community Surveys on American Factfinder factfinder2.census.gov/faces/nav/jsf/pages/index.xhtml
demomemo.blogspot.com/
my jeffolie view:
inequality: The rich Type 1 consumer investor got richer while the most common American suffered lower home equity.
Blackstone investors continue to enjoy benefits from crony capitalism because of access to the lowest cost money and cash inflows for buying homes for "all cash". Banks cheat the public and give advantage to Blackstone, et al with the best access to purchase the lowest priced distressed homes for purposes of reducing the banks non performing loans without damaging the banks balance sheets ... the public remains shut out from this 1st come access and lowest money costs, so the public relatively under performs Investors such as Billion Dollar Blackstone with inside benefits.
The working public's existing homes rely on move up buyers and new family formations to buy their homes compared to the stock of homes sold to Blackstone, et al investors buying distressed homes at lower prices. The working public's existing homes are in decent or good shape thus priced significantly higher than the distress homes purchased by Blackstone, et al. Higher priced homes suffer a lack of new buyers with 2 good incomes to get mortgages compared to the abundant cash available to Blackstone, et al. WHY? BECAUSE newly created jobs remain in low paid industries and 77% part time.
The working public's existing owner occupied homes continuous fall in price. The Investor purchased homes remained higher but this only lasts as long as the profits comparison to other investments give investors good motivation.
==========================================
Median Housing Value Still Falling
According to the 2012 American Community Survey (ACS), the median value of owner-occupied homes in the United States is $171,900. Nationally, median housing value has declined by a substantial 20 percent since its 2007 peak of $215,152 (in 2012 dollars). One factor behind the ongoing decline in home values is the drop in the homeownership rate as younger adults opt to rent rather than buy. The ACS data show that the nation's homeownership rate fell from 67.2 percent in 2007 to 63.9 percent in 2012.
Median housing value, 2007 to 2012 (in 2012 dollars)
2012: $171,900
2011: $177,193
2010: $189,419
2009: $198,198
2008: $210,716
2007: $215,152
Source: Census Bureau, American Community Surveys on American Factfinder factfinder2.census.gov/faces/nav/jsf/pages/index.xhtml
demomemo.blogspot.com/