Hi and welcome to some very interesting data.
The article I am attaching below has some upsides too. So read this article first to know why I am saying what I am saying below it.
On Wednesday, October 29, 2014 3:46 AM, The Economic Collapse wrote:
Does This Look Like A Housing Recovery To You? |
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Posted: 28 Oct 2014 01:06 PM PDT
 We
just learned that the home ownership rate in the United States has
fallen to the lowest level in 19 years. But of course this is not a new
trend. As you will see in this article, the home ownership rate in the
United States has been in a continual decline for more than 7 years.
Obviously this is not a sign of a healthy economy. Traditionally,
home ownership has been one of the key indicators that you belong to the
middle class. When people define "the American Dream", it is usually
one of the first things mentioned. So if the percentage of Americans
that own a home has been steadily going down for 7 years in a row, what
does that tell us about the health of the middle class in this country?The chart that you are about to view is clear evidence that we are in the midst of a long-term economic decline. It shows what has happened to the home ownership rate in the U.S. since the year 2000, and as you can see it has been collapsing since the peak of the housing market back in 2007. Does this look like a housing recovery to you?...  So many people get caught up in what is happening on Wall Street, but this is the "real economy" that affects people on a day to day basis. Most Americans just want to be able to buy a home and provide a solid middle class living for their families. The fact that the percentage of people that are able to achieve this "American Dream" is falling rapidly is very troubling. There are some that blame this stunning decline in the home ownership rate on the Millennials. And without a doubt, they are a significant part of the story. They are moving back home with their parents at record rates, and many that are striking out on their own are renting apartments in the big cities. This is one area where the decline of marriage in America is really hitting the economy. Back in 1968, well over 50 percent of Americans in the 18 to 31-year-old age bracket were already married and living on their own. Today, that number is below 25 percent. But that is not all there is to this story. In fact, the home ownership rate for Americans in the 35 to 44-year-old age bracket has been falling even faster than it has for Millennials... In the first quarter of 2008, nearly 67% of people aged 35-44 owned homes. Now the number is barely above 59%. The percentage of people under 35 owning homes only fell five percentage points, to 36% from 41%.So why is this happening? Well, it is fairly simple actually. In order to buy homes, people need to have good jobs. And at this point, the percentage of Americans that are employed is still about where it was during the depths of the last recession. In addition, wages in the United States have stagnated and the quality of our jobs continues to go down. As I wrote about the other day, half of all American workers make less than $28,031 a year. Needless to say, if you make less than $28,031 a year, you are going to have a really hard time getting approved for a home loan or making mortgage payments. Things have been changing for a long time in this country, and not for the better. Our economic problems have taken decades to develop, and the underlying causes of these problems is still not being addressed. Meanwhile, middle class families continue to suffer. One very surprising new survey discovered that more than half of all Americans now consider themselves to be "lower-middle class or working class with low economic security". While Wall Street has been celebrating in recent years, economic pessimism has become deeply ingrained on Main Street... Optimism may be harder to come by these days. More than half of Americans surveyed in a Harris poll released Tuesday identified themselves as being lower-middle class or working class with low economic security. And 75 percent said they're being held back financially by roadblocks like the cost of housing (24 percent), health care (21 percent) and credit-card debt (20 percent).The only "recovery" that we have experienced since the last recession has been a temporary recovery on Wall Street. For the rest of the country, our long-term economic decline has continued. When I was growing up, my father was serving in the U.S. Navy and we lived in a fairly typical middle class neighborhood. Everyone that I went to school with lived in a nice home and I never heard of any parent struggling to find work. Of course life was not perfect, but it seemed to me like living a middle class lifestyle was "normal" for most people. How times have changed since then. Today, it seems like we are all part of a giant reality show where people are constantly being removed from the middle class and everyone is wondering who will be next. So what do you think? Is there hope for the middle class, or are the economic problems that we are facing just beginning? Please feel free to share your opinion by posting a comment below...     
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Now here are my comments to the above:
If
you own a trailer park or a class c or b rental property, your good,
because people have to live somewhere. The downside is this net change
in value is deflation and if Harry Dent is right, (which he and some
other informed people seem to be), we are going to see deflation back to
1986 levels for Real Estate.
The
RE market peaked around July 2006 and has been on a steady decline ever
sense. No matter that Houston is a micro bubble and is counter cyclical
in certain classes of RE like in the $350-1M cost range and the very
high end homes like 1.5M plus.
Trouble
is the market is also saturated with this class of home as aging baby
boomers sell off at the rate of 3-7 a month the 3-4-5 bedroom houses
they once owned for much smaller living. Soon the typical home in Cinco
Ranch can be bought for 500 pounces of silver. This will be the class to
buy once the collapse happens, but wait....not now.
What
I want you to notice in this chart on Case Shiller Home Price Index is
the drop in values of RE due to a correction in the Market (Wall
Street). So as long as the FEDs pump money into Wall Street, RE values
are good right? Well what will they do if the massive planned correction
comes? I guess we will see QE5...or whatever they will call it. This
further debases the money. God knows how much money they are actually
"printing" we do not know about: like the 800 Billion that magically
appeared as a loan on the Feds balance sheet earlier this year. 800
Billion??? Either way gold value will rise and RE will fall as it will
take more green backs to buy the same thing. Rates will never go up
because they are out of tricks to kick-start the economy. Nothing is
working. Actually the WH has a massive attack on small business which is
the single largest job creator in this country...not big business. Big
Business is sending jobs overseas...to even cheaper labor.
Priced
in gold or silver, I suggest your "single largest investment" (your
home) is depreciating at an alarming rate....actually the rate of true
loss of purchasing power of the currency...about 10% per year. I know
this because I did the calculations last year and found out I was
actually losing in "real wealth" $400 a month, on a RE investment which
was rising in price at the historical rate of 5% a year. Yes, real
wealth and currency price of a home are different things. (Imagine
That?)
Here is how to do your own calculation of the real value or anything over time:
Look up the price of gold when you bought the home. Using that number, calculate the exact ounces of gold
it took then to buy your home. Now using today's figures for gold,
divide this new value into the current estimated value of your property
on today's market. Note the difference of the two values "in ounces" and
compare the two values. Oops/ Did it take more or less gold ounces to
buy your home today or when you bought it...It's as simple as that. If
you increase in gold value your home's real wealth value is actually
increasing. If it decreases, well...thank the FED. QE19 anyone?
I am late and I know it. Now you know too.
You could not pay me to own
"mortgaged R.E." right now and that's why I am selling off my last
property. The R.E. bubble is very much over and while I can I am trying to
convert to something quickly that will hold value, not lose value. Further, if I
had a home, I would be looking to sell as soon and convert to gold or better yet, silver. The Millennial's don't have a job or any money, so how can they fuel a housing buy. They can't....period. They are living at home with mom and dad.
When Wall Street tumbles down because of a major correction in some days
to 4 months from now, people will run to anything solid as a means to
get a foot hold on the free fall decline of their investments and 401K
wealth. The
same is true for precious metals when people look for a hedge on holding
on to their wealth.
Read this....
"In the absence of the gold standard, there is no way to protect
savings from confiscation through inflation. There is no safe store of
value. If there were, the government would have to make its holding
illegal, as was done in the case of gold. If everyone decided, for
example, to convert all his bank deposits to silver or copper or any
other good, and thereafter declined to accept checks as payment for
goods, bank deposits would lose their purchasing power and
government-created bank credit would be worthless as a claim on goods.
The financial policy of the welfare state requires that there be no way
for the owners of wealth to protect themselves.
This is the shabby secret of the welfare statists' tirades against
gold. Deficit spending is simply a scheme for the confiscation of
wealth. Gold stands in the way of this insidious process. It stands as a
protector of property rights."
-- Alan Greenspan, "Gold and Economic Freedom" in Ayn Rand, ed., Capitalism: The Unknown Ideal (New York: Penguin Group, 1967), 101-108
Imagine 200 million buyers coming to a very small
market which typically has only about a 1 million buyers at any one
time, (including retail jewelry buyers), and even less coin and bullion
buyers. It's going to send the price of the precious metals commodity
through the roof. How much you ask will the demand push prices? Expect $10K/oz gold and $1K/oz silver, and these figures are conservative. Today we are at some $7,780 gold ounce when comparing to base money M3. Even higher when you consider the leverage of the actual credit issued on that base.
So
is buying silver at $18 or 19 a good buy?...it's less than the cost of
production so I would say a resounding "yep."
So I am going to make this simple, a
$1800 purchase of 100 ounces today will turn into $18,000 actual real worth
almost overnight. What other investment have you made that is capable of
this kind of returns. None....period.
Yes I am buying more. It's a no brain-er. https://www.youtube.com/watch?v=GxKvTepymxs
People that know me are walking up about God's grant of unalienable rights...well what about the right to store "the value of your labor" in
something that cannot be manipulated by some for the benefit of a
very very few.
BTW: Ayn Rand is an incredible author.
All the best...buy some silver.
Through 100 years of apathy and gradualism we have arrived at serfdom camouflaged as misplaced measures of success. Ungodly politicians manipulate citizens into believing they are incapable of self government and should pay for the ever-expanding and tyrannical State. How soon they forget who furnished the labor, took the risk and provided the blood. They forget who is paying for the lifestyle and pensions they enjoy as our representative. They ignore the fact our hard earned wealth is being vaporized by fiat paper money: but can easily vote for more confiscatory theft from the many to serve the few. Why, at risk of loss of home or property do we tolerate paying 1% of the value of our home each year to a socialist public education system which: rewards poor teacher performance, ignores teaching critical thinking, preaches "there is no God" and drives home, from elementary to university, that utopian socialism (which has never worked), is better than God's design of free capitalism. I am not a revolutionary, but I do Trust in God and in the natural rights granted by Him. Those inalienable rights include exclusive use and perpetual property ownership, the rule of law, keeping the fruits of my labor without challenge and the liberty to self govern my actions. These rights and many others others I can name are the foundation of a free people. They are the rights I fought for, my father fought for and our forefathers fought for before him. They are what the world envies and many wish to tear down. Because of my faith, I know Man is not in charge. I also know if we repent and speak out and call God's name, He will restore this great nation as the Constitutional Christian Republic our forefathers designed. In silence, our democracy will end in either dictatorship or socialism. Both evils are close at hand and either can be implemented on a single pen stroke since the executive orders are in place to allow a complete takeover of the nation, your wealth, your property and your rights. However, in these last days of partial freedom "we the people" in a unified voice can change our downward slide to Gomorrah and perhaps even the world. It's up to you now. No one will take your place at the table of freedom. Are you willing to speak out and save what you love so much about living in this blessed and glorious country?
Be a blessing to someone.
