A good read, and as you said, prophetic. The chart below explains it:
Posted on 06/07/2013 6:07:34 AM PDT by blam
Best Explanation For The Fake U.S. Housing Market Recovery
Housing-Market / US Housing Jun 06, 2013 - 04:37 PM GMT
By: Profit Confidential
Michael Lombardi
Michael Lombardi writes: The average American Joe isn’t participating in the U.S. housing market. As a matter of fact, according to the Campbell/Inside Mortgage Finance HousingPulse Tracking Survey, investors purchased 69% of “damaged” properties in April 2013, while first-time home buyers accounted for only 16% of “damaged” purchases.
It is very well documented in these pages how home prices in the U.S. economy are being driven upward by institutional investors. Affirming my stance on the U.S. housing market, Suzanne Mistretta, an analyst at Fitch Rating Services, was quoted this week as saying, “The [housing price] growth is being propelled by institutional money… The question is how much the change in prices really reflects the market demand, rather than one-off market shifts that may not be around in a couple of years.” (Source: Popper, N., “Behind the Rise in House Prices, Wall Street Buyers,” New York Times Dealbook, June 3, 2013.)
Major financial institutions like The Blackstone Group L.P. (NYSE/BX) have become major buyers in the U.S. housing market. Blackstone has spent more than $4.0 billion for 24,000 homes in the U.S. housing market that it plans to rent out.
Rising prices on homes in various pockets of the U.S. housing market are a direct result of large institutional investors buying in.
Take Atlanta, for example. Blackstone bought 1,400 properties worth more than $100 million in Atlanta last year. (Source: Bloomberg, April 25, 2013.) And what happened to prices for homes in Atlanta? According to CoreLogic, a housing data compiler, home prices in Atlanta increased 12.4% in the 12-month period ended February 2013, )
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(Excerpt) Read more at marketoracle.co.uk ...
An analyst who is always bearish is not much use to anyone.
It is pretty damned stupid to insist that anyone who correlates total supply with total possible demand and notes that there is a huge overstock is some how being “always bearish”.
Now, someone who was not an idiot might find out if the persons in question had been “bearish” before the overstock. They might also wait to see if they remain “bearish” after inevitably much of the overtock eventually sits unoccupied long enough to fall into disrepair thus correcting the overstock.
Some economic laws can not be overcome with cheerleading and sloganeering. They are hard realities which one ignores at their own peril.
Agree with this.
My daughter sold her “vinyl village” ranch in a nice suburb here in Indiana to a California investment outfit.
The listing was “live” for about 36 hours.
They paid 98% of the asking price and closed immediately.
a lot of “Stupids” and “Idiots” coming out of the mouth of a person does not usually impress me when I am assessing the value of their insights.
I was bearish too - before the crash - and you can look that up as well. Then when prices fell by 50-60% and the Fed flooded the market with liquidity, I became bullish.
That’s how you make money.
A good read, and as you said, prophetic. The chart below explains it:
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