If one listens to the government shills and the talking heads at CNBC the American economy is getting better by the day. Unemployment rates are falling, Wall Street is booming, and housing prices are raising. It is all a bunch of crap and those with two brain cells working know better. Let’s talk about the so-called improvement in the housing market.
Dear friends, If you know someone who is planning to make the plunge to buy their first home or someone who is thinking it is time to sell their home and upgrade to a nicer subdivision, do them a favor and tell them to read this article at The Burning Platform before they get sucked into a bad deal.
Housing prices nationally are up 14%. Some of the worst hit cities in the 2008 housing bubble collapse, like Las Vegas, Los Angeles, San Diego, San Francisco, and Phoenix have seen housing prices jump 17% to 27% in one year. Even America’s own Greek tragedy, Detroit, saw housing prices jump 17.3% in one year. Mortgage rates are going up. And, bank foreclosures are going down. This is what people are hearing in the news and this is driving some people to want to jump into the market before prices and mortgage rates go even higher. That might make sense if that is all that people know about the current housing market. The author of the article linked above tells the rest of the story behind these aberrations in the housing market. For example, the author explains why bank foreclosures are down:
The report from RealtyTrac last week proves beyond the shadow of a doubt the supposed housing market recovery is a complete and utter fraud. The corporate mainstream media did their usual spin job on the report by focusing on the fact foreclosure starts in 2013 were the lowest since 2007. Focusing on this meaningless fact (because the Too Big To Trust Wall Street Criminal Banks have delayed foreclosure starts as part of their conspiracy to keep prices rising) is supposed to convince the willfully ignorant masses the housing market is back to normal. It’s always the best time to buy!!!
The talking heads reading their teleprompter propaganda machines failed to mention that distressed sales (short sales & foreclosure sales) rose to a three year high of 16.2% of all U.S. residential sales, up from 14.5% in 2012. The economy has been supposedly advancing for over four years and sales of distressed homes are at 16.2% and rising. The bubble headed bimbos on CNBC don’t find it worthwhile to mention that prior to 2007 the normal percentage of distressed home sales was less than 3%. Yeah, we’re back to normal alright. We are five years into a supposed economic recovery and distressed home sales account for 1 out of 6 all home sales and is still 500% higher than normal.
But, this little rid bit about today’s housing market should scare the hell out any potential home buyer at this time:
The distressed sales aren’t even close to the biggest distortion of this housing market. The RealtyTrac report reveals that all-cash purchases accounted for 42% of all U.S. residential sales in December, up from 38% in November, and up from 18% in December 2012. Does that sound like a trend of normalization? There were five states where all-cash transactions accounted for more than 50% of sales in December – Florida (62.5%), Wisconsin (59.8%), Alabama (55.7%), South Carolina (51.3%), and Georgia (51.3%). In the pre-crisis days before 2008, all-cash sales NEVER accounted for more than 10% of all home sales. NEVER. This is all being driven by hot Wall Street money, aided and abetted by Bernanke, Yellen and the rest of the Fed fiat heroine dealers.
Repeat after me slowly: 42%OF ALL u.s. RESIDENTIAL SALES IN DECEMBER WERE ALL-CASH PURCHASES! That is astounding! In a normal health real estate market, all-cash sales would be on the order of 4% to 5%. So, what’s going on? All-cash sales means that Wall Street investors are using the Fed’s easy money to buy up real estate on the cheap and drive up prices to make the suckers believe that the housing boom is back so they can flip the deal in a few months and walk away with a tidy profit before this manufactured bubble explodes, as it must.
Potential home buyers need to tink twice before jumping into today’s housing market. They could be in for a very hard landing because the Wall Street Bubble Making Machine is working overtime to get into the sucker’s pocket before they get left holding the empty bag that they created.
Well, that’s what I’m thinking. What are your thoughts?