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Home prices rise for sixth month, a sign of recovery

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posted on Sep, 25 2012 @ 06:44 PM
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That's what the article says. My question is how is this a sign of recovery when the jobs market still sucks. Something just doesn't add up.

NEW YORK (Reuters) - U.S. home prices rose for a sixth straight month in July in the latest sign of a sustainable housing market recovery, while a jump in consumer confidence this month offered a harbinger that Americans are ready to loosen their spending.
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Home prices rise for 6th month in a row




posted on Sep, 25 2012 @ 06:51 PM
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I've thought about that as well.
Inflation? Demand? Other?

Not sure about it, but it certainly struck me as odd given unemployment and other sectors falling. Maybe someone smart will stop by and enlighten us.


edit on 25-9-2012 by tvtexan because: (no reason given)



posted on Sep, 25 2012 @ 06:55 PM
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reply to post by Jaellma
 


I can't help but think, some of this reported rise in home prices, is due to massive buying of foreclosed homes by outside agencies, and corporations. I don't think it truly reflects spending by single family buyers. The numbers are always tweaked and skewed, in attempts to show our ailing economy better than it actually is. Expect to see more of this in the next two months, before the elections.

Des




edit on 25-9-2012 by Destinyone because: (no reason given)



posted on Sep, 25 2012 @ 07:02 PM
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Understand the role of QE3 in this. This is not a sign of anything but another bubble in the making.




There is a housing bubble forming in places like Sparks, NV, and in Phoenix and I am sure many other places. This bubble is caused by banks lending money out to the wealthy and hedge funds. I have written about this before. The 1 percent are still buying up all the real estate. QE3 is an effort to assist these buyers, and assist the banks who lend to them. QE3 is an attempt to blow another bubble in real estate, so that the TBTF banks can be more secure in trusting other banks. QE adds to the reserves of banks, and that makes them more willing to lend. Read more: www.businessinsider.com...


See more at the link


They are driving up the price of housing so that you may never be able to afford a home.



posted on Sep, 25 2012 @ 07:08 PM
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reply to post by MsAphrodite
 


Good point. Another point, many who are buying at this time, are not buying homes. They are buying...dirt. Location location location is the name of the game. God only made so much dirt...as there are more people needing dirt to house them, the more dirt will cost. Be careful where you buy your dirt. If someone wants your dirt, and they have enough money and power to take it....they will.

Des



posted on Sep, 25 2012 @ 07:15 PM
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reply to post by Destinyone
 


I think you're right as well as the fact that much of what has languished without outright foreclosure has also lapsed on property taxes and it takes a couple years for those to get around to force-auctioning usually. That probably started awhile back for time frames and large numbers. Just my guess..
edit on 25-9-2012 by Wrabbit2000 because: minor correction.



posted on Sep, 25 2012 @ 07:17 PM
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Enter the slum-lord Billionaires...

You'd think that with all the foreclosures, the average person (who still has a job) would find opportunity, and be able to locate a decent deal on a house. (good luck getting a loan)

The problem is, you and I aren't even invited to some of these "auctions".
You have to have minimum of 1 Billion, or you don't even get to play.

If you think QE3 re-opened the gates, just watch what happens if the blow-hards are successful in getting Rental Income Streams Securitized.



posted on Sep, 25 2012 @ 07:23 PM
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reply to post by Destinyone
 
Not necessarily true. My cousin just bought a 3 family house in Brooklyn, NY, just near the new stadium. That area is blowing up, in terms of real estate and home purchases. I think the biggest thing will be if the banks start to loosen up their strings and allow more borrowing. That will only come about if unemployment eases.

So yeah, for the most part, people are buying dirt spots or the big purchases are investors and not the small buyer. Maybe the small guy is still renting out but I do think that some of the folks who traditionally were on the sideline are now starting to buy.

I dunno. Take it for what it's worth.



posted on Sep, 25 2012 @ 07:29 PM
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reply to post by Jaellma
 


I am happy for your cousin and their purchase. Unfortunately, this is not the norm. We won't be seeing an upward trend in stories like your cousin, until the jobs numbers sharply rise. The Banks will often try to keep the purse strings tighter on the newly employed versus the stable wealthy. Banks will keep their lending policies in line with the later.

Des



posted on Sep, 25 2012 @ 07:42 PM
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reply to post by Jaellma
 


This is the aim of QEIII. Basically to re-inflate the housing bubble. It's insane. Yet, suckers are going to line up again. They will think they are 'doing great' because a number on a piece of paper about the value of the home they bought which they cannot afford says so. Don't believe me? Try...

www.youtube.com...

www.marketwatch.com...

www.bls.gov...

www.examiner.com...

www.moneynews.com...

On top of that, the 'housing market' is far from a homogeneous entity. The cheap seats are what's driving up the voodoo.

www.nytimes.com...

The real economy is still in the pooper.

blogs.wsj.com...

www.bloomberg.com...

www.guardian.co.uk...

But hey if it makes you feel good: yeah sure! The housing market is on the way up again. Whatever 'up' means. You are all millionaires America. Think about how much money you are making on your 'investment'? A home is an excellent choice to sink your dollars into and the bigger the better. Home prices NEVER go down. There has never been a better time to go out on that limb and expose you and your loved ones to a stiff financial shellacking. Drink it up Brainiacs!!!!



posted on Sep, 25 2012 @ 07:52 PM
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Interest rates are so low, how could it not inflate the housing prices for these last 6 months? We may be broke, but we are not stupid. A 30 year mortgage for 3.5% and housing at it's lowest in 10+ years? Yeah, it's not a sign of recovery, it's a sign that people know a good deal when they see one.

Not everyone is out of a job right now.

It certainly does not mean we are in a recovery though. Everything else is more expensive, we are all just trying to stay even and a low mortgage is a primary need in this economy.

I think they will let this go on this way for a while, low interest, but if anyone starts to get too rich in the middle class, they will hike up the rates.



posted on Sep, 25 2012 @ 08:27 PM
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reply to post by Jaellma
 


Because it's not true.

Absent is an accounting for all the homes withheld from the inventory, the number of homes that should be foreclosed upon that have not been foreclosed upon, and a huge amount of cash investors who are not actually living in the homes they own.

From a historical perspective we're not even close to bottom yet.

A momentary uptick in the pricing does not create a true trend towards recovery. Mark my words on this.



posted on Sep, 25 2012 @ 08:42 PM
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Three points make a graph... This is just in time for re-election. After that, it's in the toilet. The next few years are going to be mighty interesting.



posted on Sep, 25 2012 @ 09:19 PM
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It seems the current index number is showing a return to Jan 2011 levels.

They said THAT was a "recovery" too.

I think the commercial interests are a factor, not individuals.

Lots of info here:
Case-Shiller Home Price Index

real strong stagnant recovery......
looks like were are stuck on 2003 prices.



posted on Sep, 25 2012 @ 09:28 PM
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reply to post by xuenchen
 



Interesting though I must say that we are definitely well below 2003 prices where I live. It will be interesting to note how things end up as a result of this election. Fragile times we live in.



posted on Sep, 25 2012 @ 09:31 PM
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reply to post by Jaellma
 


Or inflation. Since you know..... job growth is stagnant and Real Wage is falling like a rock.



posted on Sep, 26 2012 @ 07:21 AM
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reply to post by MsAphrodite
 
I agree. A lot of things are being propped up until after the election.

They are using Federal mediators to help push things along and not rock the boat in many negotiations. After the elections, I have a feeling a lot of things will start to fall apart but it may not happen overnight as a lot of people think but it will happen nevertheless.



posted on Sep, 26 2012 @ 08:19 AM
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People have been indoctrinated by the GOP to believe that the Unemployment Rate is the only economic indicator. Sure, it's important of course but it is a LAGGING indicator. In other words, other things (demand is a key one) have to pick-up before hiring can. People lose sight of the fact that although 8% (round numbers) of people are unemployed, 92% have jobs. Getting that 92% to start spending will help things get better. Although things are fragile to say the least, that 92% is slowly starting to spend.

Look at a variety of other indicators: Baltic Dry Index, business starts to business closure rate, consumer spending, the markets, etc. Things have been improving for awhile. Slowly, but improving. Again, anything could derail this becuase we're not isolated from global issues over which we have no direct control.

My wife is in real estate conveyance and has seen a significant shift from re-fi to purchases. A major issue has been that most purchases are not first-time buyers. That means they need to sell their existing home before they can buy the new one. Which means someone else has to sell THEIR home to buy this person's. That viscious cycle strangled the housing market. Getting qualified, first-time buyers into the market is critical but the qualification conditions are steep.

But don't spend too much time worrying about it. Romney has said that when he becomes president he plans on liquidating the 200,000 properties currently owned by the federal government which will drive prices back into the toilet. This will have the effect of scaring-off would be first-time buyers (being not sure if prices were going to continue to drop) but effectively set up a fire-sale for all his rich friends to gobble up real estate. It's a great time to have money.



posted on Sep, 26 2012 @ 08:36 AM
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8% unemployment ^^^



anyway it's part of QE3 and what it's designed to do, make people believe in the federal tooth fairy. our economy is 70% based on consumer spending, so it should surprise no one that the feds paint a less than honest economic picture, it's a form of sales tactic.

you want morons to spend money they don't have, tell them everything is fine and dandy and they'll bite.



posted on Sep, 26 2012 @ 09:46 AM
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reply to post by LittleBlackEagle
 


Yea... kinda like Bush and McCain holding hands in the Spring of 2008 teling the Americcan public that 'the economy is fundamentally sound' when they knew that the wheels were coming off and we were circling the drain. Kinda like that you mean?



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