by Pat Darnell | Oct 25, 2012 | Bryan TX
Maybe there is a local problem...
While the number of homes sold was down 1.7 percent from August, the median selling price has now risen for seven straight months. That hadn't happened since 2005-2006.
U.S. Government Sues Wells Fargo In Mortgage Case... October 9, 2012 The government alleges the bank knew some loans it issued did not meet federal requirements.
______________________________Reference
http://www.npr.org/2012/10/02/162099460/candidates-say-little-on-difficult-issue-of-housing
http://www.npr.org/blogs/thetwo-way/2012/10/09/162593546/u-s-government-sues-wells-fargo-in-mortgage-case
http://www.npr.org/blogs/thetwo-way/2012/10/19/163234214/sales-of-existing-homes-dipped-in-september-but-prices-rose
2 comments:
Cash buyers are becoming increasingly scarce. One reason being they can't sell their existing house because the mortgage people won't qualify anyone to buy it unless they have cash or mega-down payment. So that seller sits on his leveraged house, creeping down on the price until the leverage isn't so good.
Meanwhile, the partially qualified buyer gives up and rents from the investor for more than a house payment plus insurances and taxes. giving him a chunk of change as security deposit. Which all total, with due diligence, could have been parlayed into a purchase. Giving the investor sums of money to go back to the beginning and offer the lower leveraged owner cash. Haven't seen a banker with a flat-top since the 70's.
Are you saying that investors are deflating the home market by making all the house deals these days for 40% below retail, and using their profits to propagate their deflation program, at the same time as they inflate rentals? Home ownership for individuals/families not being a sound investment due to the market deflation brought on by investors, then, is another financial drain on American society. However, investors spend to rehab homes which stimulates the economy, and they provide rentals for those not able to buy homes. Also, investors probably pay small business taxes which Romney was trying to promote. There must be capitalist methods to bring back the real estate market; however, it has been so slow, just a tiny recovery; not attractive at all if you are a small time investor. Can't flip anything; not worth a flip. No reason to risk capital.
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