Posted on 08/15/2010 12:54:22 PM PDT by thecodont
Somewhere, somehow, in the last decade the so-called American Dream seemed to insinuate itself into the Bill of Rights. Government policy, among other factors, pushed homeownership to a lofty 68% of all households.
That was then.
The number has been steadily backsliding in the last couple of years, and housing analyst John Burns says he got "a lot of heat" for his recent report predicting that homeownership would drop below 62% — and maybe further — if the number of "strategic defaulters" who walk away from their underwater mortgages continues to increase, he said.
"Homeownership is clearly a value that's promoted by most politicians," Burns wrote in the mid-July report. "They are in for a rude awakening, however, and a legacy that they will not be proud of."
It's an interestingly glum assessment from a man whose real estate consulting company based in Irvine provides market analysis to some of the nation's largest builders, developers and real estate investors. He's no cheerleader, Burns said — they're paying him to call it as he sees it.
And the way he sees it, several factors have historically pushed homeownership upward:
•Aging demographics (more people buy houses as they get older).
•New household formation (younger people leave Mom and Dad and set out on their own).
•Affordability.
•Social policy.
(Excerpt) Read more at latimes.com ...
Policy based on good intentions. Meet reality.
Whatever liberals touch, liberal destroy.
Yep, and all at the low cost of just ones personal freedom and personal wealth.
The idea that every American was entitled to home ownership was ridiculous as well as unsustainable.
Every society needs a certain percentage of the work force to be mobile and not tethered to a particular location by a mortgage payment. One of the contributing factors to today's high unemployment is that too many people can't leave the homes they're underwater in to go elsewhere and look for work.
......existing home sales report due out on August 23rd.
•The existing home sales report will show that sales collapsed in July (this is showing up in all the regional reports).
•The existing home months-of-supply will jump to double digits.
•House prices are probably falling again, although this might not show up in the repeat sales indexes until September or October (this data is released with a lag).
•On August 27th, the second estimate of Q2 GDP will be released. This will probably show a significant downward revision from the preliminary estimate of 2.4% annualized growth. The downward revision is due to lower construction spending than the BEA initially estimated, less contribution from inventory adjustments, and the June surge in exports.
•The unemployment rate will probably start ticking up again soon (or the participation rate will fall further).
With the end of the housing tax credit, calculated risk blogger also (good source) expects residential construction employment to decline further over the next few months.
http://www.calculatedriskblog.com/
The American dream of home ownership was raped and pillaged by the mortgage brokers, the realtors, the appraisers, the home inspectors and yes the buyers. Yes the buyers who were walking away from the closing tables with a big fat check — now they wonder why they are underwater. These “buyers” never intended to keep the homes they were buying — they just wanted to borrow more than the house was actually worth and walk away with a big check — a legal way to rob a bank. People who defaulted should not have their balance wiped off the books — the IRS should come after them for the difference — get a judgement, take their assets — any one who purposely defrauded the system, that is.
Here around the Atlanta area buyers were “high fiving” and knucle bumping each other at the closing tables.
An audit should be done — if you bought and walked with money from the closing during 2002-2008/9, return the money now. Do not forgive their “underwater” amount — deduct their check they received at the original closing!!!!
I’m sick of their FRAUD. Prosecute the appraisers and mortgage lendors — get them all.
I I could figure out how to get rid of the one I have,
I would never, ever, ever own another one.
Home ownership has become an anchor around your neck.
If you “deduct” this money who do you give it to? The government?
Walking away from the table with cash was not possible in all states. Georgia was one state where you could. I know a guy who had a home built for $120,000. He financed $160,000 and pocketed $40,000. He eventually lost the house but he didn’t lose any money. Georgia also is one of the states with the highest foreclosure rates.
You’ll hear over and over that home prices are going up. I bought a little over a year ago. Tried to refinance and it doesn’t appraise. It’s dropped more than 10% in one year. I do realize that a different appraiser could come up with a higher value but the bottom line is prices are dropping.
Those upside down will always be upside down. That’s why I look for islamabama to “forgive” all those mortgages. When that happens everyone of us should stop making payments.
Once again, repeating the claim that people who have a mortgage are homeowners.
democrats, always helping the little guy... stay in need of social programs
Yeah, I meant to put a /sarc under this but I knew everyone could figure it out. Socialism sounds so damn appealing until you look under the surface and see the consequences. Our Founding Fathers knew this. And yet here we are with a marxist president with his “spread the wealth” BS.
I agree, but how many people invested in real estate because it was the only thing rising in value? Interest rates have been kept deliberately low to facilitate business loans and home buying which hurt savers a great deal. Real estate was a way to invest AND get a return. Due to gov.t interference, home prices rose astronomically, making it ever harder for average people to afford a home.
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