Why Middle Class Homes Aren’t Selling

Moe Bedard

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(Source: OurBroker) - Despite the hopes of many the real estate marketplace has not returned to the era of rising prices and expanding home sales. The certainty that once powered real estate sales, the view that real estate was a sure and certain investment, one steady to grow in value, is no longer widespread. To understand what’s going on you have to look at three realities.

The New Realities of Real Estate

First, in a broad sense home prices are rising across the country. According to the National Association of Realtors existing home prices in April were 5.2 percent higher than a year earlier.

Second, new-home sales continue to lag with April showing a 4.2 percent decline when compared with 2013.

Third, despite impressive price growth during the past few years home values as of February remained 7.6 percent below the 2007 peak.

What these general figures do not show is that the real estate market has become remarkably segmented.

For instance, the National Association of Home Builders reports that for June “of the approximately 350 metro markets nationwide, 56 returned to or exceeded their last normal levels of economic and housing activity.” And what happened to the 290 or so metro markets that have not seen rising economic and housing activity? Don’t ask.

Read more from OurBroker: http://www.ourbroker.com/news/real-estate-middle-class-homes-061614/
 
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Royal Delta

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Sep 25, 2013
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But the luxury home market is booming...

Our economy has deep deep structural problems that TPTB are in no hurry to fix: declining real wages, huge student-debt burden, unemployment, and underemployment. In my opinion, middle-class real estate values will takes decades, if ever, to recover. The banks and the real-estate industry killed their own golden egg.
 

Moe Bedard

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Yes, the luxury home market and economy for the rich is booming.

I think this is part of the plan to destabilize the country through real estate and employment. To change the whole landscape of this country to create the future the powers that be are planning for. Part of that plan is not millions of Americans owning homes. It is quite the opposite.
 

NeedhelpinPA.

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Feb 14, 2013
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Yes, the luxury home market and economy for the rich is booming.

I think this is part of the plan to destabilize the country through real estate and employment. To change the whole landscape of this country to create the future the powers that be are planning for. Part of that plan is not millions of Americans owning homes. It is quite the opposite.

So who are buying or owning these homes? Foreign investors?

I hope and pray the real estate market IMPLODES on itself. And everyone in America who owns a home becomes Squatters and the banks GET NOTHING!!!!!!!!!!!!!!!!
 

jhn_plsn

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Apr 29, 2008
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This is from an uneducated lower middle class blue collar guy.

I get the feeling that the master plan is to reduce the American standard of living for the masses to the point where labor costs can be utilized evenly across all nations. All that seems to have happened though is piss poor hazardous products ending up bought by those of us who have little choice but to buy with the few extra pennies we are privileged to get from our employers. Better yet do without and keep the money just in case causing a stagnant economy where we are afraid to let go of our money.

So many have been foreclosed on and laid off that the cost of a home has been reduced to the point where a much smaller income will qualify for home ownership. Now we wait until this new group of poorly paid homeowners settle in and build their confidence (get suckered in) to spend. In the mean time the previous generation of homeowners ( The Foreclosure Generation) are holding every penny for later in life. So now there are two major groups not spending any money to better secure their own futures.

Financially constipated.
 

Royal Delta

LoanSafe Member
Sep 25, 2013
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jhn_plsn, I agree with your take. I pretty much think the big banks have "captured" the U.S. government through their lobbying and the revolving door - with people moving from government to banking, and back again. Look at Iceland - after the 2008 crisis, the government chose the side of the people over the banksters. This country took the opposite track.

I'm amazed too at this so-called "mortgage settlements." Just the other day, Massachusetts got a huge settlement from the banks for illegally foreclosing on homeowners. But has anyone ever heard of a homeowner who was illegally foreclosed on getting a dime from these settlements? And even after these settlements, under which the banks "agree" to stop their fraudulent activities, the banks just go right back to their illegal activities!

I really think it's just corruption and "take the money and run." The 1% running the game only seek to enrich themselves, and no amount of money is enough. They have no allegiance to the United States or its citizens, and would just as soon live anywhere. The people they hire to do their dirty work feel the same.
 

Moe Bedard

Call 1-800-779-4547
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So who are buying or owning these homes? Foreign investors?

I hope and pray the real estate market IMPLODES on itself. And everyone in America who owns a home becomes Squatters and the banks GET NOTHING!!!!!!!!!!!!!!!!
Yes, and investors here in the U.S. as well.

I used to predict it would, but now they have it so controlled and the bases covered that it may never happen.

More like frogs in a pot :(

 

Moe Bedard

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This is from an uneducated lower middle class blue collar guy.

I get the feeling that the master plan is to reduce the American standard of living for the masses to the point where labor costs can be utilized evenly across all nations. All that seems to have happened though is piss poor hazardous products ending up bought by those of us who have little choice but to buy with the few extra pennies we are privileged to get from our employers. Better yet do without and keep the money just in case causing a stagnant economy where we are afraid to let go of our money.

So many have been foreclosed on and laid off that the cost of a home has been reduced to the point where a much smaller income will qualify for home ownership. Now we wait until this new group of poorly paid homeowners settle in and build their confidence (get suckered in) to spend. In the mean time the previous generation of homeowners ( The Foreclosure Generation) are holding every penny for later in life. So now there are two major groups not spending any money to better secure their own futures.

Financially constipated.
I thought that was a great analysis.

A global economy and New World Order.

 

willingtoplay

LoanSafe Member
Apr 3, 2013
81
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This is from an uneducated lower middle class blue collar guy.

I get the feeling that the master plan is to reduce the American standard of living for the masses to the point where labor costs can be utilized evenly across all nations. All that seems to have happened though is piss poor hazardous products ending up bought by those of us who have little choice but to buy with the few extra pennies we are privileged to get from our employers. Better yet do without and keep the money just in case causing a stagnant economy where we are afraid to let go of our money.

So many have been foreclosed on and laid off that the cost of a home has been reduced to the point where a much smaller income will qualify for home ownership. Now we wait until this new group of poorly paid homeowners settle in and build their confidence (get suckered in) to spend. In the mean time the previous generation of homeowners ( The Foreclosure Generation) are holding every penny for later in life. So now there are two major groups not spending any money to better secure their own futures.

Financially constipated.
This is from an over-educated former middle class white women.

In my first philosophy class we were required to read an article by a prominent philosopher in which he states: "Doing justice to the Third World would require exporting capital and jobs until everything is leveled out - until an honest day's work in a ditch or a computer earns no higher a wage in Cincinnati or Paris than in a small town in Botswana. But then, it can plausibly be argued there will be no money to support free public libraries, competing newspapers and networks, widely available liberal arts education, and all the other institutions that necessary to produce an enlightened public opinion, and thus keep governments more or less democratic"

It looks like this guy got his wish. To bad he died and didn't see how truly devastating the experience actually is for many of us. The argument didn't fly with almost everyone in the class, because as well all know the suffering is not leveled out.
 
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NeedhelpinPA.

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Feb 14, 2013
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Yes, and investors here in the U.S. as well.

I used to predict it would, but now they have it so controlled and the bases covered that it may never happen.

More like frogs in a pot :(


Moe....I must agree with you. I was reading over my mortgage line by line....and they have their asses covered BIG TIME!!!!!!
 
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Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
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Southern California
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Moe....I must agree with you. I was reading over my mortgage line by line....and they have their asses covered BIG TIME!!!!!!
And all the while we are just like Abbot and Costello; "Who's on first?"...

 

pennygram

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Sep 29, 2010
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BUT we do have one powerful voice that most of us are not exercising... our vote! Start at the local level and vote 'em out of office and get like minded people in. Say no to anyone that is taking money from big corporations. Once you have taken control of your local area then concentrate on your state government and so on. We can make changes as long as we are changing the heads.... A politician's worst fear is being voted out... when they start seeing the shake ups they will change or they we be changed.

Yes we can all jump in and say the vote boxes are rigged and they may be so BUT again we are AMERICA and need to believe in each other....

We are going to have an economic reset and it is not that very far off IF we don't start making changes - what we buy, what we stock pile, who we leave in office... big changes coming.... are you ready?
 

buchanovich

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Oct 9, 2013
149
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New Jersey
The vote is a laugh any more. The two parties, supposed to give us a choice, are in reality two sides of the same coin. Their agenda is personal power and wealth, regardless of what they have to do to get it. A third party you say? Even those who believe that, and some parties have intelligent candidates, ultimately don't vote for them because they "can't get elected", and vote instead for "the lesser of two evils" to "avoid throwing away the vote." What the thinking people have to do is make their own preparations and use their most important weapon - their minds - to deal with what is coming. Your government certainly doesn't care about you other than using you.

The middle class homes will never come back under current circumstances because what WAS a middle-class home is no longer affordable. There are two components to that. One is the declining real wage which everyone can see. We all know the various mechanisms being used so I won't waste space. The other is that many homes are being withheld. Banks say they are "stabilizing the market" . OK, let's see, they are getting taxpayer money and they want to hold the homes to keep the prices up. Sounds like getting money for both ends and keeping it. My wife and I were looking for a home last year. Funny how the "deals" that were supposed to come on the market didn't. I used to do a lot of research to find foreclosures and short sales. Funny how something wasn[t on the market one day was "under contract" the next even before the listing came on the MLS. Then, they sat and no sale was completed for over a year of "under contract". Then, one sees news items on the financial websites that a large bank sold a package of over a billion dollars of homes to a large investment company. There were a number of these, which is why I didn't use names - for those shills and dupes who want to ask sarcastically if I can even give an example, OK BofA and Blackwell. The announced intent of the REIT buying was to rehab and rent them out, supposedly to offer them eventually for sale to the occupant. Can it be more blatant? Yeah, we'll sell it to you when prices are up as well as rates. Smaaaarrrtttt, some will say.

So, the shills in the media say, "Reduce Expectations!" Then they have "news" items saying people are opting for smaller homes as a new trend towards efficiency and environmental friendliness. CON! Let me say it again. CON! Brainwash people to believe they are doing the right thing by paying the same for less, just like cereal boxes.

Who is behind all this? The string pullers? An earlier poster said it : those who have no loyalty to the USA. There are those who would destroy us and those who would HELP THEM as long as they got richer. Why do you think the Trilateral Commission was formed? So the super rich from the US, Europe and Japan (wondered where the "Tri" came from?) would all have someplace to go and have wealth waiting there if the "balloon went up" anyplace. It then evolved into a self appointed aristocracy using their power to manipulate nations. But, what was the real obstacle? Independent people, as in the middle-class. A middle class, able to "make it" on their own. People who worked hard, made some sacrifices but didn't have rings in their noses. Can't control people like that, especially if allowed to think. So, move jobs so the wages go down, cripple markets, make people into middle-ages serfs. I once asked my mother why some people who were rich kept trying to squeeze ordinary people - this was 50+ years ago - and, as a woman of great wisdom, she said, "A millionaire isn't rich if everyone else has a million dollars." So, the middle class is stomped down in wages, housing and dumbed down by a deliberately fouled "education" system.

It's all like a chart of the stock market being analyzed, one parameter being a "gap". A deviation from the trend creates a gap and according to technical analysis, the gap must be filled, which means a spike up must come back in some way to the main trend - the main variable being time. The rise of the middle-class in the United States is just such a rise. These people, the string pullers putting empty suits into office, are trying to close that gap back down and go back to a time when there were aristocrats and serfs. No, the names won't be the same, lots of good window dressing and distractions (nothing works like a little cognitive dissonance). The mob then becomes easy to rule: Panem et circensis.