enigmaman

Are We Becoming a Nation of Renters? Investing for the New Housing Dynamic

Using what metric? This is the proverbial" chicken or the egg" dilemma.

Are prices to hi or are incomes to low,
at this stage of the housing game home prices are back to pre bubble times and if we were back then with full employment there would be no housing afford-ability problem.

If prices are to high then incomes are falling below what they were pre housing bubble, so we are then going backwards not forwards in the economy.

Would you prefer that wages catch up with current home prices or prefer home prices move to meet wages.

The first scenario means recovery the other catastrophe, we will not attain the first without jobs being created we can attain the other just by maintaining the status quo. From the actions taken by this Admin it looks like they have chosen the #2 scenario. While this would be bad for the American people it will be good for those in power because from our weakness they will draw strength, its the Golden Rule "Those who own the gold , rule"


On Nov 06 07:34 AM datadave wrote:

> Home prices are still way too high in relation to incomes. That's
> the problem.

Are We Becoming a Nation of Renters? Investing for the New Housing Dynamic

Obama will be more then happy to oblige your request, he will put you in affordable housing, with low rent, and rent control so not to cause you any stress worrying about the future, you both believe in the same same thing, security over opportunity, "You want to go to heaven but you dont want to die, Obama will do what he can to make it happen for you" you just have to keep the faith and hang in their long enough for him to oblige


On Nov 06 06:45 AM 3percenter wrote:

> There is no such thing as a "homeowner". Stop paying your property
> taxes and find out pretty quickly who really owns your home. I'm
> 35 and have never owned a home. I am still renting and am able to
> put away a good chunk of savings every month. My former neighbors
> who were also tenants, on the other hand, bought their first home
> at the peak of the boom and soon realized they were part of the sub-prime
> borrowers crowd. They are now struggling to stay in their home without
> a dime left over at the end of every month. The American Dream? No
> thanks.

Are We Becoming a Nation of Renters? Investing for the New Housing Dynamic

Now that its becoming very clear that the Admin has thrown in the towel as it relates to stimulating the economy, you do not hear Obama preaching job creation at the same level as in the first quarter, same goes for fighting to stop home foreclosures especially now that you have Fannie and Freddie instituting lease in lieu of foreclosure programs, there answer to foreclosures is they will have none of it, they will take the house back in exchange for a one year lease. I havent thought this policy out but what I feel is this says the Government knows it cant fix the problem, it does not speak well of the economy, is not good for property owners, property values, property appreciation because IMO this will turn into a massive government housing program that will cause more problems than it cures but in the end the Government will be in control of more real estate then is healthy for America. As far as investing in any parts of the industry, Im not seeing any near term benefits, long term what I see is the typical government housing problems that have never helped property values.