Wednesday, November 28, 2012

House Price Recovery Chart

As would be expected, the housing recovery on a percentage gain basis is strongest in the areas which saw the greatest collapse. There is fundamental attractiveness to living in warm states such as California, Arizona, Nevada and Florida. It's Fed money manipulation that creates the bumpy, roller-coaster ride.


(Via WaPo)



3 comments:

  1. So, would Peter Schiff's predictions be considered wrong?

    I'm an avid listener, and I recall him saying housing prices will continue to fall. Perhaps he didn't take into account the bernank's money printing to create another housing bubble.

    Well, I suppose he will be right in the end, once this second bubble is blown up completely and pops again.

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  2. It is astounding the role homes have come to play in respect to the U.S. economy in terms of construction, financing, sales, and of course political agendas.

    Personally, I think it is a 'dumb' industry. Other than a few product innovations, what does this industry add to long-term vitality of an economy in terms of jobs that require a clue, new breakthroughs? Answer, not much, similar to most government work, and the parasite lobbyists-contractors-lawyers-think tanks and others that feed on it, it adds little.

    Be it as it may, yes, Bernanke(and the handlers behind him), that has gone to town to create the most activist fed in history now handling every aspect of our(and the global)economy, have decided they wish to reinflate home prices as a means to bail out banks, underwater mortgage holders, and local govts.(most property taxes depend on valuation,and tax rate, to determine tax take). Of course it is inflated money, so the price increases are not all that real, but I suppose they feel good to those seeing recovery, or if buying in recent times a perceived gain.

    My understanding is 'Hot Money' is what is driving much of the increase in hard hit markets in Calif., S.Fla., Arizona, Nevada.

    Even HELOC's are being shoveled out once again.

    So yes, look for another blowup, and seeking to place it on those that did not choose to partake(until there are no more of them left to foot the bill).

    See:
    Miami Booms Like Never Before on Rental Demand: Mortgage
    http://www.bloomberg.com/news/2012-11-19/miami-booms-like-never-before-on-rental-demand-mortgage.html

    A Tale of Two California Cities
    http://www.doctorhousingbubble.com/california-real-estate-culver-city-california-city-flippers-and-floppers-of-california-real-estate/

    Following The Herd Of Foreign Money Into U.S. Real Estate Markets
    http://www.doctorhousingbubble.com/foreign-money-investing-in-us-real-estate-china-funds-flowing-into-us-real-estate-2012/

    Also see:
    Bernanke Speech - Challenges in Housing and Mortgage Markets
    http://www.federalreserve.gov/newsevents/speech/bernanke20121115a.htm

    FHA Sets Stage for Taxpayer Subsidy With 2012 Deficit
    http://www.bloomberg.com/news/2012-11-16/fha-sets-stage-for-taxpayer-subsidy-with-2012-deficit.html

    Home Equity Loans Make Comeback Fueling U.S. Spending
    http://www.bloomberg.com/news/2012-11-26/home-equity-loans-make-comeback-fueling-u-s-spending-mortgages.html




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  3. Perhaps Denver, CO, is the real estate market that has maintained its value over the years. For example, the home at 2907 Pierson Way, Lakewood, CO, 80215, in Applewood, is listed at $345,000.

    Lakewood is a suburb west of Denver, and is centered on the Denver Federal Center and the Denver West Office Complex. I use to live in that area, but found the winters to cold and the summers to warm; and the air pollution a little too much, so I moved to Bellingham WA for the milder coastal climate.

    Thanks to a continuing rising M2, growing attendance at Western Washington University and Whatcom Community College, and shoppers from Vancouver coming to shop at Fred Meyers, and Bellis Fair Mall, Bellingham has been thriving economically.

    Dave Gallagher of the Bellingham herald reports Personal income rose in all 366 metropolitan statistical areas for the first time since 2007. Whatcom county’s growth in 2011 was nearly identical to 4.4 percent increase nationwide in per capita personal income. Personal income, as defined by the bureau, is the income received by all persons from all sources. Along with net earnings at work, it includes rental and interest income as well as government benefits. Whatcom's per capita personal income of 38,000, in 2011 ranked 153rd highest out of the 366 metro areas. Whatcom's increase was not strong enough to begin closing the gap in the Seattle, WA, area. According to the bureau, per capita personal income in the Seattle area rose 4.6 percent in 2011, to $51,000. Odessa, TX, had the largest annual increase in per capita personal income, at 12.4 percent. According to the report, both areas reported strong earnings growth in oil/mining and related activities. Biloxi, MS, had the slowest annual growth, at 0.3 percent. Much of the growth in personal income came from work (up 5.5 percent) and property income (up 7.6 percent) across all of the metro areas. Transfer receipts, which include Social Security and unemployment insurance, increased by 1.5 percent in 2011, down from a 7.1 percent increase in 2010. Bridgeport, CT, had the highest annual per capita personal income among metro areas, at $78,504. McAllen, TX, had the lowest, at $21,620.

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