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Realty Trac claims to be the nation’s leading source for comprehensive housing data. Their 2013 year report below emphasizes the volume of short sales, foreclosures, cash transactions, and institutional purchases. Before you read their report, consider this well-targeted paragraph pointing out what they DID NOT COVER in comparison:“Real household income continues to fall and nearly 25% of all households with a mortgage are still underwater. Young people are saddled with $1 trillion of government peddled student loan debt and will not be buying homes in the foreseeable future. Dodd-Frank rules will result in fewer people qualifying for mortgages. Mortgage insurance is increasing. Obamacare premium increases are sucking the life out of potential middle class home buyers. Retailers have begun firing thousands. The financial class had a good run. They were able to re-inflate the bubble for two years, but the third year won?t be a charm. In a normal housing market 85% of home sales would be between individuals using a mortgage, 10% would be all cash transactions, less than 5% of sales would be distressed, and 40% would be first time buyers. In this warped market only 40% of home sales are between individuals using a mortgage, 42% are all cash transactions, 16% are distressed sales, 5% are flipped, and only 27% are first time buyers. The return to normalcy will be painful…”
With that caveat, here is the 2013 year end report from RealtyTrac.com:
Now that you’ve seen the happiest face that RealtyTrac could put on the 2013 industry numbers, here’s the full article (from which I pulled their last paragraph, above) on the significance of what RealtyTrac did, and did not cover. Warning: the moderator does not clean out all bad language from his commentors, regardless of their expertise. I’ve gotten used to filtering out the junk to find what’s worthwhile, but not everyone is comfortable with that. If you need to, just stop reading when the comments begin.
http://www.theburningplatform.com/2014/02/02/warped-distorted-manipulated-flipped-housing-market/
The burningplatform.com article above was reprinted Saturday on a financial website that hedge fund managers glue themselves to daily because of the integrity and financial understanding the site represents.
I think the implication is that because of the Federal Reserve’s deliberate practice of digitally skyrocketing the money supply, and encouraging the banks to lend it out at way below market rates for over a decade (since the dot-com bust), it has caused so much malinvestment in real estate that there is incredible risk in the housing market now. It highlights Jackie’s best informed advice to minimize your risk in any kind of real estate deal you find worth doing.
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Jackie, you asked who was that masked man…. er… website. Here was where the BurningPlatform.com article (that analyzed the Realty Trac report) was reprinted:I usually prefer to cite the original, unless there are some unusually insightful commentors on a reprinting site (especially if they can “keep things clean” — not always a given on zerohedge).
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