Obama’s ‘Housing Rebound’ Lies Laid Bare: Total Range Of Data Shows That This Is Still The ‘Glitz Bricks’ Phenomenon – 10 February 2014

obamahousesptnet

Four times more foreclosure sales, two thirds fewer first time buyers.Yesterday I posted about how – among a host of other mendacious myths – President Obama’s ‘rebounding housing market’ is obviously a load of old toss. So today I am delighted that various US Sloggers have pointed out to me a source that not only supports the idea, but also got there two weeks before I did.

The Nielsen-style real estate audit Realty spells out what a flimsy soap-bubble the US property market is. These are the key points:

* 16.2% of all U.S. residential sales are distress-related – that’s to say, resulting from forclosure processes and other unpleasant outcomes of the American Credit Dream. That’s 1 in 7 of all houses sold. Before the 2008 bust, that figure was 1 in 34.

* Cash purchasers were 42% of all residential buyers in December 2013. Cash purchasers are not ‘middle America’: yet 2 in 5 of all sales were for cash. A year ago, the figure was less than 1 in 5. So any idea of increased lending from banks should be dismissed immediately: mortgage applications today are almost exactly one third of what they were in 2005.

* Properties bought by first time buyers are 40% below normal.

US house prices home prices grew by 14% in 2013 and 9% rise in 2012, but the data shown above and by Realty once again back up the Glitz Bricks phenomenon first identified by The Slog in September 2012.

It’s important for President Obama to sex up the US housing market, because he knows full well that no real economic rebound has ever happened without a property recovery in US history. But this isn’t a property revival: it’s big, smart money investing in things that have an eternal value…when no currency or stock market anywhere on the planet does.

It is just another solidifying symptom of the élite’s acceptance that Crash2 is coming. Top-end property and arable land are being allowed real market freedom, which is why they’re rising stratospherically in price. Gold is being artificially depressed in price, but I still maintain the time will come when such a thing will no longer be tenable.

I’m one of those putting money where mouth is at the moment. I am about to invest $100,000 in a house which I fully expect to fall in value: but it will still be somewhere comfortable to live, and it will still retain a value. Fiat currency has no value beyond the promise of multiply-proven liars…and can be stolen electronically from a bank account within a millisecond. Neither is true of genuine physical investments.

Related articles: The myth of falling US unemployment      Stretching belief a bridge too far

Earlier at The Slog: Why another hung UK Parliament is almost inevitable in 2015

www.hat4uk.wordpress.com / link to original article

Comments are closed.