"Homes for the Homeless"

"Homes for the Homeless"

Wednesday, August 25, 2010

Lillian Abel: Housing Market, Article by Michael Snyder

Lillian Abel: Housing Market, Article by Michael Snyder

Housing Market, Article by Michael Snyder

15 Signs The U.S. Housing Market Is Headed For Complete And Total Collapse
Michael Snyder, The Economic Collapse | Aug. 20, 2010

Read more: http://www.businessinsider.com/15-signs-that-the-us-housing-market-is-headed-for-complete-and-total-collapse-2010-8#ixzz0xehK5xBj

The U.S. housing market is dying. You will only hear hints of this on the mainstream news and from the politicians in Washington D.C., but as statistic after statistic continues to roll in, the reality of what is happening is becoming very difficult to deny.

Up until the end of April, the giant tax credit that the U.S. government was bribing home buyers with helped stabilize the real estate market, but now that the tax credit has expired the decline of the U.S. housing market has resumed. Mortgage defaults continue to set new records. Foreclosures continue to set new records. Home repossessions by banks continue to set new records. The number of homes being constructed and the number of Americans applying for home loans is at stunningly low levels.

The truth is that this is not a short-term downturn in the housing market. During the past two decades, an insane amount of debt fueled an artificial housing bubble that drove home prices to ridiculous levels. Now the U.S. housing market is trying to correct itself, and no matter how many trillions of dollars the U.S. government throws at the problem the fundamentals of the marketplace are still going to have their way eventually.

The U.S. economy is in decline. The employment situation is going to go from bad to worse. Americans without jobs are Americans that cannot buy homes. Millions of Americans who are employed are finding it increasingly difficult to make it from month to month. The truth is that there is no way that Americans can afford the ridiculously inflated home prices that we have seen over the past decade any longer.
So, yes, the U.S. housing market is headed for a complete and total nightmare.

* Home Sales Drop 27 Percent In July And Things Are Only Going To Get Worse For The U.S. Housing Industry
* Bancor: The Name Of The Global Currency That A Shocking IMF Report Is Proposing
* This Economy Is Ripping The Dignity Of Millions Of Unemployed Americans To Shreds

So exactly how bad are things out there right now?

The following are 15 signs that the U.S. housing market is headed for a complete and total nightmare....

Read more: http://www.businessinsider.com/15-signs-that-the-us-housing-market-is-headed-for-complete-and-total-collapse-2010-8#ixzz0xecOnNks

Wednesday, August 18, 2010

Commen Sense Investment

If a home cost half million there are only a few people who could afford to keep up the payments on such a house. If a person who buys a house for say even 350,000. What happens if they loose their job? Do they have enough savings to cover the high payments every month until they're employed again? What happens if they don't get all the "raises" they expect over the next 10 to 20 years? Will they still like living from paycheck to paycheck and putting all their money in the house? What happens if the value of the house goes down and not up due to ability to pay by most of the population? Housing is not a good investment when it's high priced.

Paying 350,000. for housing for a person who lives from paycheck to paycheck is insane. All they need to do is loose their income and they loose everything. If a person pays 80,000 for a house then they most likely will survive on savings they have until they are employed again. Also, that half million dollar home may go down in value if the wages of people are still below the cost of housing. No one will be able to buy it at that price. This is happening now to people who paid over 500,000 for their home. They can't sell it. It's only going to get worse not better. Housing prices have not hit bottom yet.

Tuesday, August 17, 2010

The Economy; It's broke

The cost of housing is still too much to pay for a necessity. People are paying 50 to 75% of their income for housing. There's a continuing growing population of homeless who can't afford housing at all. Children are living with their parents and more than one roommate are needed to afford one apartment. We're making a whole subculture of homeless in an "affluent society". That's just plain horrible.

The government will never be able to "fix" an economy where everyone whose employed is over their heads in debt and most of the population can't afford a roof over their heads. The flow of buying and spending will come to a compete stop. It's doing so already .... the brakes just aren't completely floored yet so the worst is yet to come, unless the high price of necessities stops cold.

Monday, August 09, 2010

Still too high

The astronomical cost of housing, still far over what the majority can afford without having disposable income to stimulate the economy is one of the major reasons for unemployment.

"Investors" turned to real estate many years ago instead of the Stock Market. This is one of the major reasons for over inflated housing costs. The average consumer then got involved and jumped in buying homes they really could not afford. Still today there are many people out there who now think housing is an "investment" which it is not. It is a long term investment, which in 30 years will increase somewhat in value (economic history of real estate) , however, not the enormous profits which people expect to acquire immediately. It is true that many became very rich when they sold the homes and buildings that they paid 30,000.00 for half a million up to a million. Houses are not worth that much and the consumer needs to wake up and say NO! to ridiculous prices. I've also read several articles recently that people who are millionaires and live well pay low prices for their homes (as low as 30,000).