"Housing Recovery" - My Disappointment

[mikegg]

I'm very disappointed that the media is calling rising home prices as "housing recovery". In many cities, home prices are close to 2007 bubble prices or surpassed them such as San Francisco, Vegas, Seattle, Phoenix, etc.

The media is cheering for it. The government is making sure that it happens through quantitative easing and purposely induced inflation.

It really shouldn't be called a "housing recovery". It should be called "let's get back to the prices that nearly destroyed our country and make sure the middle class can't afford a home".

 

[dmcowen674]

It really shouldn't be called a "housing recovery". It should be called "let's get back to the prices that nearly destroyed our country and make sure the middle class can't afford a home".

"Mission Accomplished"

 

[Oldgamer]

Well I agree, I have a family member still trying to sell their house up north. Prior to the 2008 crash the house they lived in was worth over a million easy. Now they are lucky if they get half that. They have had the house on the market for over 2 years, and finally got an offer but it doesn't look like a very good offer.

 

[Jaskalas]

This is the United State's current economic model at work.

It is our express purpose as a nation, through our government, and our monetary policy to ensure inflationary prices, and call such practices a recovery worthy of celebration.

Obama, Bush, and company all act as if those prices weren't supposed to crash. That it is their duty to restore the bubble economy. They get their "brains" behind the operation from a revolving door of Wall-street cronies and sycophants. From CEOs to board members, to lobbyists, to economic advisers, to cabinet members, and back to CEOs. Our empty headed leaders take the council of these men as sacrament.

Is it any wonder then, that you find yourself in an economy being milked and sucked dry once more? No one in a position of power has taken notice to stop it. Wall-Street was too big to fail, what about the little guy, what about you?

It is my fear that the past 60 years were the post-WW2 golden era, masking the true nature of economics from Americans. It is my fear that the economic model which exploited our unique status as the 1% of the world, and concentrated wealth across our nation has now turned against us. Now it's being concentrated even further, before being off loaded into cheap labor overseas. The funnel of wealth into American pockets has turned into a drain out of our pockets.

Wall-Street doesn't care if the rest of us are getting screwed, their investments need higher prices. Our homes must become unaffordable to benefit their bottom line. Our government bows to this wisdom and the Housing Crisis was just the beginning. The American economy is an implosion waiting to happen.

 

[Vic]

The housing bubble of the last decade and today's housing market have almost nothing in common. The bubble was driven by easy low and no down financing and had high sales volume. Today's market is driven by cash buyers and has low volume.

 

[Slew Foot]

Well we dont produce any shit anymore so the economy has to run on bubble after bubble

 

[Argo]

The housing bubble of the last decade and today's housing market have almost nothing in common. The bubble was driven by easy low and no down financing and had high sales volume. Today's market is driven by cash buyers and has low volume.

I agree. The op uses Seattle and San Francisco as two examples. In those cities the rising costs are mostly driven by growing tech industry. And I believe that will only continue, as technology finds its way into more aspects of our lives.

 

[K1052]

I agree. The op uses Seattle and San Francisco as two examples. In those cities the rising costs are mostly driven by growing tech industry. And I believe that will only continue, as technology finds its way into more aspects of our lives.

Not to mention the minor issues of buying land and getting it entitled (and under construction) in SF. If you started a project and conceived a child at the same time it's even money that they'll hit high school before you get a TCO from the city.

I literally cannot buy anything in the neighborhood that I live in because basically nothing is for sale and what does come on the market is gone almost instantly if there is no horrible flaw (indian burial ground, nuclear waste, rodents of unusual size, etc).

 

[mikegg]

I agree. The op uses Seattle and San Francisco as two examples. In those cities the rising costs are mostly driven by growing tech industry. And I believe that will only continue, as technology finds its way into more aspects of our lives.

Prices nationwide rose 9% YoY. Phoenix isn't driven by tech market, neither is Vegas, LA, Florida, etc.

 

[Jimzz]

Prices nationwide rose 9% YoY. Phoenix isn't driven by tech market, neither is Vegas, LA, Florida, etc.

Those other places have a large number of houses for sale at very low prices. Unless you think people will move away (aka Detroit) then buying houses right now is a good long term investment. Many are buying for rentals and then can sell when the price goes back up.

I looked into that as me and my wife can get cash easy but in NoVA/DC area the price went up a year or 2 ago and even then they did not drop that much in the good areas. Fairfax raised our taxable value of my house by 60k this year, and adjustments are done yearly.

 

[boomerang]

I'm very disappointed that the media is calling rising home prices as "housing recovery". In many cities, home prices are close to 2007 bubble prices or surpassed them such as San Francisco, Vegas, Seattle, Phoenix, etc.

The media is cheering for it. The government is making sure that it happens through quantitative easing and purposely induced inflation.

It really shouldn't be called a "housing recovery". It should be called "let's get back to the prices that nearly destroyed our country and make sure the middle class can't afford a home".

Come to Michigan. No housing recovery found.

 

[z1ggy]

The value of my house is still down overall from when I bought it 3 years ago.

 

[Londo_Jowo]

Housing is booming in Southeastern Texas, specially in the suburbs west of Houston (Katy, Cinco Ranch, Rosenberg, and Richmond). My house value has increased by 10% over what I paid for it in 2008.

 

[Jhhnn]

Come to Michigan. No housing recovery found.

The auto industry drove the economy of Michigan for decades. Job Creators moved it elsewhere.

 

[Naeeldar]

Prices nationwide rose 9% YoY. Phoenix isn't driven by tech market, neither is Vegas, LA, Florida, etc.

With the massive drops we had the last few years thats not saying much. Vegas and Florida in particular got destroyed by the bubble - the only place they could go was up this year and next year too for that matter.

Realistically outside of San Fan, Seattle, and a few other choice citiess (Austin) the market has been relatively flat or minor increases. It's not a huge jump in housing prices by any means.

 

[JManInPhoenix]

The price of housing in Phoenix is now back to what it was before the crash. The drive in this area is primarily retirees from Canada and the colder parts of the US buying winter homes. All of them pretty much pay cash.

 

[Jhhnn]

With the massive drops we had the last few years thats not saying much. Vegas and Florida in particular got destroyed by the bubble - the only place they could go was up this year and next year too for that matter.

Realistically outside of San Fan, Seattle, and a few other choice citiess (Austin) the market has been relatively flat or minor increases. It's not a huge jump in housing prices by any means.

Depending on where you look, prices have exploded in Denver.

 

[Naeeldar]

Depending on where you look, prices have exploded in Denver.

There are always local market impacts. Exploded is also relevant too but Denver is being impacted by a big change in their economy - whole state is for that matter.

As a whole the national housing prices are very modest increases or flat. Only small localized spots hit by certain market impacts are jumping dramatically.

 

[michal1980]

The auto industry drove the economy of Michigan for decades. Job Creators moved it elsewhere.

talk about a twisted view of what happened in Detroit.


But if we are playing on that level what party has been running detroit for decades? shouldn't it be utopia since no republican has been in charge for 50+ years?

 

[Genx87]

The housing bubble of the last decade and today's housing market have almost nothing in common. The bubble was driven by easy low and no down financing and had high sales volume. Today's market is driven by cash buyers and has low volume.

I'm really surprised people are paying cash for these properties given these record low mortgage rates.

 

[Argo]

I'm really surprised people are paying cash for these properties given these record low mortgage rates.

As far as I understand it's a function of demand. There are 5+ offers on most houses in Bay Area, so you have to stand out in sellers eyes. Bringing cash to the table is one such way (along with paying above asking).

 

[Wreckem]

Housing is booming in Southeastern Texas, specially in the suburbs west of Houston (Katy, Cinco Ranch, Rosenberg, and Richmond). My house value has increased by 10% over what I paid for it in 2008.

All the highly populated areas of Texas (DFW, Houston Area, Austin area, and San Antonio) are having a housing boom.

To give some people an idea.

There are multiple new developments in the DFW area with ~35'x~100' lots with 2000-2500sqft single family homes with base prices from $350-500k. The most egregious is a development across the street from an extremely large municipal dump. The development is also in a flood plain. Oh and the homes in the development have a tax rate that is one of the highest in Texas at 3.69%

 

[Wreckem]

I'm really surprised people are paying cash for these properties given these record low mortgage rates.

They do all cash up front and then refinance if they want to. All cash offer trumps a mortgage offer because it takes less time and less can go wrong.

 

[Genx87]

They do all cash up front and then refinance if they want to. All cash offer trumps a mortgage offer because it takes less time and less can go wrong.

Good point. I didnt think of it that way.

 

[Wreckem]

Depending on where you look, prices have exploded in Denver.

So much so you can now buy new construction right next to a nuclear superfund site for $350-500k+. Woohooo.

Reminds me of the people who bought similarly priced homes downwind from a battery smelting/recycling plant in Frisco, TX.