Posted on 08/13/2014 4:55:48 PM PDT by Kaslin
Supply of homes at the bottom-third of the market is down 17 percent from a year ago.
Meanwhile the top-third home supply is up 15 percent while the middle is up a modest 3 percent according to Redfin.
The bottom third is anything priced below $198,000.
But $150,000 or $200,000 does not buy in terms of size and location what it did just a few years ago.
Overpay or Be Shut Out
So once again, first-time buyers face the question "overpay or be shut out?" And once again it appears many make a very poor choice.
(Excerpt) Read more at finance.townhall.com ...
Then you have to pay taxes, maintenance, and insurance based on the inflated price. In the meantime, salaries have not come close to catching up due to government and Federal Reserve policies.
It all depends on location.
So what. Are we supposed to feel sorry for people? If you can’t afford a house, you don’t buy one. Simple. That goes in any market.
Exactly
Uh it’s called the market.
two big things,
1. Obama has financed (free interest) several very large “investment banks” to buy up tens and tens of thousands of houses all over the country (to get them off the market so that they no longer are available to Average American Citizens like you and me)
this also gives these companies big profit opportunities, as they are busy now selling securitized interests in their new property portfolios, etc and etc. the whole range of potential profit opportunities.
and
2. USA continues to allow foreign investment in our local property markets. Some countries do this, some do not, some are sort of in the middle with limitations or regulations.
In several key market areas, Communist Chinese and other funds have been POURING in to buy up almost every available house imaginable (one leading broker advises that 3/4 of sales in his region are to Chinese buyers, and he’s even flying to China to sell them our local houses directly in sales seminars he’s holding in Bejing and Shanghai hotels, and we just heard of anther agent doing likewise....more probable)
The word from Chinese friends is that these are mostly the Communist party apparachniks who’ve made big money by being factory managers or other party post holders...and now wish to hide some of their assets abroad while the PRC government is still permitting the export of large amounts of money (they previously did not permit this, and rumor has it they may start restricting or channeling it again). The Obama administration allows this to continue on this end.
so.... supply has been “artificially” gobbled up by large capital forces... try buying a house today in some key market areas and you will be asked if your bid is conditional on getting financing or not. If it is conditional (if you need to borrow money) the agent will then advise you that your bids will be up against all-cash bids from both of the above sources.. .and that you should prepare yourself to probably not be able to acquire a house.
Other market areas are still depressed, of course.
Your experience may, therefore, differ.
But the above is a reality in several of the large high-profile marketplaces in USA today.
Thank your government policies for creating most of the housing crisis in the first place. And now thank your government policies for allowing any possible advantages you might have accrued from this crisis...to be gobbled up by very large economic powers (some of which contribute a whole lot of money to certain political campaigns, but that’s another posting and I’m tired for tonight)
Consequently the people in the lower income strata can afford less of everything.
Add to that thanks again to government interference in the market, many lower priced homes were purchased by lower income people that could not afford them. When these people defaulted on these home mortgages and abandoned them the homes fell victim to looters who stripped the homes of everything that could be sold.
These homes consequently are no longer on the market because they can not be occupied because of the damage caused by the looters or the city government has condemned the homes and leveled them.
So once again government has created a new problem by attempting to intervene in another.
Most of the lower priced homes in my area (midwest) are being purchased by investors and converted to rentals. Some are mom and pop types with a few rentals and a lot are big syndicates from east and west coast.
In my view, that is smart money.
Carlyle (some of the smartest money) is buying trailer parks. That tells you where the future of America is.
Whats the next step after those investment banks buy up the houses? Govt takeover
This isn’t the free market at work.
From the posted pic.....that last step is a doozy!
For later reading.
Thanks for posting this.
I once again pray and thank God He has provided me the wherewithal to have a paid off house.
That does seem rather odd.
I don't think so. Most of the big financial outfits are on great terms with the federal govt. They coexist in a mutual prosperity sphere.
Possibly. But first they rent them out and then they sell securitized instruments based on the projected revenue stream. ( or they can do it several other ways). Problem bring, I think, that management expenses are much higher than maybe they imagine — when you’ve got thousands of units scattered all over hell and gone. (Management is a lot more efficient if the units are all on same site ). We will see how this goes — we will see.
“the wherewithal to have a paid off house.”
Also the good sense. There is a house at the right price for everyone.
Mine cost less than 15 grand after repairs, didn’t require much wherewithal. Did require an honest appraisal of my situation.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.
