Break out the party hats.
No, not because the regular NFL referees are back on the job, because the housing market is in full recovery. At least according to the world’s smartest economic journalists at Bloomberg, a subsidiary of the Obama campaign.
The media is becoming a laughing stock among people who have a scintilla of common sense, have tried to balance a family budget, have owned or own a business. In their efforts to influence opinion instead of reporting on opinion, at least the media provides some daily humor to those living in the real world.
All one need do is Google new home sales August 2012 to gain a clear picture of the health of the housing market. Let’s take a look at the top three to appear on our search.
From The New York Times: “New-Home Sales Slipped in August”. Now that doesn’t seem to indicate a recovery in the housing market, but to their credit the Times did write:
” New-home sales edged down to a seasonally adjusted annual rate of 373,000 in August, a dip of 0.3 percent from July’s revised rate of 374,000, the Commerce Department said Wednesday. That had been the fastest pace since April 2010 when government tax credits were bolstering sales.”
The inference? Sales haven’t been this good since the solution to all man’s ills, government, was bribing home buyers with free taxpayer money. Wonder where that money came from? You, China, or Bernanke’s printing press?
Up second on our search Bloomberg: “Sales of New Homes Hover Near Two Year High”. Now that headline sounds like we’re on the way to recovery especially when Bloomberg writes:
” Purchases of new U.S. homes hovered in August near a two-year high, adding to signs that the housing market is on the way to recovery.”
Adding to signs? What signs may we ask? “Builders are a little more optimistic about future sales and buyer traffic and the mortgage environment is favorable,” said Anika Khan, an economist at Wells Fargo Securities LLC in Charlotte, North Carolina. “New homes sales will continue to improve over the next few months and in the coming year.”
Well golly gee we’re on the road to recovery because builders are a little more optimistic. A lot like the sailors after the Indianapolis sank who were on the inner circle while those on the perimeter were being attacked by sharks.
Why the mortgage environment is favorable according to Bloomberg: ” Federal Reserve policy makers have targeted the housing market with further accommodation measures in order to spur growth and reduce unemployment.” The money to buy a home just got cheaper because of the magical Bernanke printing press is in overdrive buying Mortgage Backed Securities at a $40 billion monthly clip, indefinitely, until those greedy businesses begin to hire.
Our third ranking story in our search of new home sales in August? Why from your very own government funded NPR: “New Home Sales Were Flat in August, but Prices Rose Sharply”. So not many builders were selling homes but those who were received higher prices. Is that indicative of a housing recovery?
The Case Shiller home price index reported home prices rose in all twenty cities surveyed at the whopping rate of 1.2%. However this was a report for July.
Due to the increase in prices it was reported that over one million home owners are no longer under water on their mortgage. Really? A home owner that only owed 1.2% more than their home was worth isn’t under water, they are over leveraged.
A couple of points on prices. Banks continue to hold foreclosed properties off the market to support prices. Who could blame them? They’re using your bail out tax dollars to pay the holding costs.
The new home median price increase in August of 11.2% is welcome news to builders because new EPA and OSHA regulations have driven up the cost to build by about the same percentage.
Although prices are headed in the right direction, like the perpetual Obama recovery, prices remain 30% below pre-recession levels. Granted those homes were overvalued but please don’t tell us a 1.2% monthly increase is a panacea to the underwater homeowner.
Yes, the unholy alliance between a corrupt liberal media carrying the water for the Obama campaign wants you to break out the party hats, the housing market is in full recovery just in time for the election.
Cut it out guys! From my vantage point from within the housing industry, you’re making my sides hurt.
The false narratives and personal attacks on Romney is all they have. Romney just keeps pointing out the truth. Can’t have that, so it appears Bloomberg and all the other Obama campaign volunteers want to convince you Obama has saved the day. Break out the party hats boys and girls, big government has saved the day again.
On a side note, for you who believe the liberal media and Obama, I have several great buys on bridges here in central Illinois. Send small unmarked bills in bundles of thousands, and I guarantee I’ll etch your initials on a bridge.
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.