HOME SALES CONTINUE TO PLUNGE AS HOME PRICES SURGE

The National Association of Liars (Realtors) reported existing home sales this morning and they continue to blather about weather and a glorious future. Meanwhile, existing home sales have plunged by 7.5% in the last year and are now at a 21 month low. Does this chart show the housing recovery you hear so much about on the MSM? Existing home sales are at the same level they were in 1998, before the Federal Reserve induced bubble years from 1999 through 2006. A critical thinking individual might wonder how home prices have soared by double digits over the last two years as existing home sales have made no headway.

Home prices have soared by 7.9% in the last year, as sales have plunged. That makes sense. Right?

First time home buyers accounted for 30% of the sales, near a record low, and the same level as one year ago. In a healthy growing housing market they would make up 40% to 50% of buyers.

The irrational surge in home prices can be seen in the data supplied by the NAR. Here is the recipe:

  • Too Big To Trust Wall Street banks withholding foreclosures from the market to create an artificial shortage of inventory.
  • The Federal Reserve handing hedge funds (Blackrock) billions of free money to buy foreclosures at artificially high prices from the Too Big To Trust Wall Street banks in a buy to rent scheme designed to improve the balance sheets of the insolvent banks.
  • These two suppositions are confirmed by foreclosures plunging to only 14% of sales from 21% one year ago, despite millions of homes still in the foreclosure process and the fact that 50% of all sales were to investors. In the years before the banking oligarchs took complete control of our financial system, cash sales would be 10% of transactions.
  • Now that cable TV has ten flip that house shows on again, like 2006, you know every get rich quick moron who fell for the Dot.com boom and the previous housing boom have entered the market just as the next bust is about to occur.
  • You have Fannie, Freddie, and the FHA giving out 3% down mortgage loans to the delusional poor who deserve to own a home.

The entire housing recovery has been a financially engineered fraud. Blackrock and the other hedgies have made a killing and their Ivy league MBA created models are telling them to exit stage left. The propaganda spewing media and the lying realtors like Larry Yun will continue to mislead the muppets as the big swinging Wall Street dicks move onto their next scam. Home sales will continue downward, with prices not far behind.

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TPC
TPC

“You have Fannie, Freddie, and the FHA giving out 3% down mortgage loans to the delusional poor who deserve to own a home.”

A lot of people in the last two years have bought homes using FHA. These people cannot afford the homes they “bought” and will get crushed like a bug during the next bubble burst.

TeresaE
TeresaE

Caught an ad on tv, for some bank willing to lend veterans 120% of their equity.

Deja vu

We are living in the matrix. Up is down, day is night, and one day it will all come crashing down.

Realestatepup
Realestatepup

I sell foreclosures. Mostly. With some short sales. The banks are definitely holding back inventory. I continue to see vacant, foreclosed homes rotting away, not being put back on the market. AND…banks are questioning the values we give for these places. They want to price them higher and higher. Example:…older home in very rural market, built in the 30’s. Missing flooring, freeze damage, old windows, bad roof. No clue if the septic is even viable. I recommended a list price of 89,900 in December. They said they didn’t believe it was that low. Put it on for 159,900. Months later, guess what? Cash buyer for 87K. Mind boggling.

card802
card802

Yup, the white trash finally moved out from behind me. Checked out the house now that it is for sale. No carpet, no vinyl floors, base missing, door casing missing, doors gouged from the dogs, window sills torn up from the dogs, walls with holes, needs a complete repaint, dust and dirt everywhere.
1,900 sq foot basic three bedroom ranch, in west Michigan, needs about $25k in flooring and other needs.
Listed for $159k, should be around $120k, without all the repairs.

overthecliff

…and this does`nt even include the retail commercial meltdown !

I am a house
I am a house

Realestatepup

Cunts like you who sell foreclosures are part of the problem, not to mention you are dumber than Joe Biden. Go fuck yourself.

wip
wip

Realestatepup doesn’t ever respond.

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