Combining record low rates with banks withholding millions of foreclosures to keep inventory low and prices naturally went up. They have risen to only 2003 levels however the media would have you believe happy days are here again. What these prices represent to me is a manipulated price bubble that is not real. Any shock to the system and down they will go.
An organic recovery driven by demand emanating from real job growth adding qualified buyers to the market has not happened. We have an Obama administration that touts job growth so anemic it doesn’t keep up with new entrants into the labor force. The sycophants in the media either willingly repeat the story or are incompetent.
The best example was how the media reported the surging housing market because of new home sales. Rising from 309,000 in 2011 to 367,000 in 2012 was all the evidence they needed. Wow what an increase, housing must be surging!
Had these journalists the investigative curiosity of a three year old they would learn that 367,000 new home sales are 74% below the peak, 50% below healthy or average, and the same number as in 1967 when there were only 200 million Americans.
Is the housing market advancing in the right direction? Absolutely, but as with the Clinton administration’s social engineering, the advancing housing market today is predicated upon manipulation.
This time by the Federal reserve’s $45 billion monthly purchase of mortgage backed securities, zero interest rate policy, and manipulation of inventory by big banks.
The housing recovery is not due to organic demand because of an improving economy. It is a human reaction to the actions of government manipulators, similar to the tax credits in 2009 to buy a home providing a temporary bump in sales. Worse is the recovery being reported as real by a liberally biased, and incompetent media.
The opinions expressed here are solely those of Fritz Pfister or identified sources, and not necessarily those of RE/MAX Professionals of Springfield or RE/MAX International.