Housing...After years of historic declines, the housing market is surging again..The bottom has been reached, the housing recovery is for real..
http://www.washingtonpost.com/busine...y.html?hpid=z1
Fantastic news!!
Member
Obama's Economic Recovery Marks A Milestone
Housing...After years of historic declines, the housing market is surging again..The bottom has been reached, the housing recovery is for real..
http://www.washingtonpost.com/busine...y.html?hpid=z1
Fantastic news!!
Member
With real wages flat and unemployment still high one has to wonder where the money is coming from? The price of homes rose dramatically from the 80's until 2007 although no real wage increases were seen. This helped to create the housing bubble. With ZIRP promoting low mortgage interest rates it may be foreigners who are buying up the real estate which will drive up the home prices putting many homes out of range for many Americans.
Member
"Government data showed a larger-than-expected drop in the pace of home sales last month. The Federal Reserve has begun debating when to withdraw support for the mortgage market, and economists expect interest rates to rise before the end of the year, potentially tempering demand."
If interest rates rise so will inflation and it is most likely happening due to the availability of cheap money under the ZIRP program. The Federal Reserve earlier claimed the interest rate rise would not be seen until around 2016. Now they are changing their position on this forecast especially since the 10 year Treasuring Bill saw a rise above 2% yesterday. That has some analysts concerned.
Member
"Many experts have feared that the Fed's bond-buying efforts will lead to inflation, and although recent economic reports suggest no noticeable increase in inflation at the wholesale or consumer level, the sharp rise in bond yields is likely worrisome to policymakers and investors."
"The yield on 10-year government bonds plays a key role in lenders determining many consumer interest rates, such as home mortgage rates."
http://www.usatoday.com/story/money/...rcent/1870261/
Member
This is exactly where the America-hating right hoped we'd never reach. Prepare for an onslaught of bitterness about that.Originally Posted by naive
Member
Ha ha.... see above
Member
My post at #3 came from the article posted by your political cheerleader. The Feds originally claimed interest rates would not start to rise until 2016. Now they are seeing a possible rise by the end of this year. QE easing was suppose to continue until the unemployment rate dropped to 6.5%. That plan is changing faster then expected.
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Sour grapes
Member
Cheer leading does not lead to smart investing. It is precisely why people are moving out of bonds and into equities. This will drive bond prices lower and yields higher. High interest and high inflation will kill this rally so be careful what you cheerlead for.
Member
I "cheerlead" for a middle class recovery.
Housing is part of it.
Are you saying you're against a recovery?
Member
A recovery under false premises? NO! The government is manipulating the housing market through ZIRP. The interest rates do not represent true market rates. If and when the government stops ZIRP the we will see what the actual market rate is. And they may have to do this much sooner than they planned if the interest rates rise do to investors moving out of bonds and into stocks. The Feds are playing with a double edge sword. They believe they have to power to control runaway inflation. We shall see.
Member
That's right ...screw everyone else...the middle class recovery is key.
The wealthy can be drained and the poor are well...they're poor so who cares!
It's the middle class that's key! They provide the jobs...they do the hiring.
Yep got it!
Member
If it is a real recovery then it is because the middle class is doing far better than the Obama administration led us to believe. Without the strong support of the middle class no economy would be good. If the administration wasn't lying then this recovery is being artificially propped up by government stimulus spending.
Member
not so fast skippy
Robert Shiller of the Case/Shiller Index isn't as sanguine as Obama's cheerleader at the Washington Post.
--------------------
http://www.nytimes.com/2013/01/27/bu...uds.html?_r=2&
A New Housing Boom? Don’t Count on It
By ROBERT J. SHILLER
Published: January 26, 2013
WE’RE beginning to hear noises that we’ve reached a major turning point in the housing market — and that, with interest rates so low, this is a rare opportunity to buy. But are such observations on target?
It would be comforting if they were. Yet the unfortunate truth is that the tea leaves don’t clearly suggest any particular path for prices, either up or down.
On the one hand, there were sharp price increases in 2012, with the S.&P./Case-Shiller 20-City Index, which I helped devise, up a total of 9 percent over the six months from March to September. That comes after what was generally a decline in prices for five consecutive years. And while prices dropped very slightly in October, the trend was quite encouraging for the market. (Our November data come out on Tuesday.)
But some of these changes were seasonal...
Member
It's only what, the 5th time that has been reported, once for each year since the housing bubble popped.
Member
"The bottom line for potential home buyers or sellers is probably this: Don’t do anything dramatic or difficult. There is too much uncertainty to justify any aggressive speculative moves right now. If you have personal reasons for getting into or out of the housing market, go ahead. Otherwise, don’t stay up worrying about home prices any more than you do about stock prices." Robert Schiller
Member
Did you copy and paste this from Barry Obama's 2010 "Summer of Recovery" or from Barry Obama's 2011 "Summer of Recovery" ... ??
Oh wait. You are insinuating that 2013 will be Barry Obama's "Summer of Recovery" ... ?
Why do you leftwingers keep falling for the blatant lies spewed forth by that racist community organizer?
Is it because you want to see America fail as much as Obama does??
Member
What are you talking about? The relatively small (when compared to the size of the economy) amount of stimulus spending peaked in the fourth quarter of 2009/first quarter of 2010 and has essentially petered out. Meanwhile we've seen a net reduction in government jobs (another 10,000 government jobs were shed last month) and a reduction in discretionary spending. These trends are actually putting a damper on economic growth as we saw in the fourth quarter when the economy barely grew at all. This sudden drop in gdp was attributed to, among other things, a sudden drop in defense spending.
Member
The same people have been talking about high interest rates for years and they have been wrong for years. How many times do their dire predictions have to be proven false before they finally admit that they are wrong?
Member
My concern about housing prices right now is that they are being driven up by hedge funds buying mortgages and foreclosed homes in mass. They are literally taking homes off the market which is lowering the supply and beginning to send prices up. They will dump their holdings for a profit and prices will go back down or at least their upward trend will slow. It's got bubble written all over it.
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