Insanity is repeating the same thing over and over and expecting a different result.
I have been saying “What recovery” for years, yet people keep pointing to “numbers” that say RECOVERY! No. we still haven’t recovered fully from the great recession. We have band-aided and bailed out economic sectors, industries, and companies with greased politicians and great lobbyists, but we have not had market corrections and a real recovery.
Housing was the final straw that led to the collapse in 2007. With the low interest rates and rising home prices, not to mention new homes still being built, you may be saying, yeah, we are recovered… but take another look.
Homeownership rate lowest in 25 years
Home prices are rising, and homeownership is falling. How can that be?
If prices are rising, it must be because there is increasing demand for homes, but if there is increasing demand, then why are there fewer homeowners?
It has to do with this: math. The homeownership rate in the first quarter of this year fell to 63.7 percent, the lowest since 1990, according to the U.S. Census. The homeownership rate is the ratio of households that own to overall households—the remaining being rental households.
As with “the unemployment rate” the numbers politicians and the media hacks like to report is massaged and manipulated to tell you what they want you to know, not what the truth is.
Having said all that, we should also note that there was actually a slight decline in the total, real number of homeowners. It wasn’t enough alone to push the homeownership rate down as far as it did, but it should be noted. As investors continue to buy single-family homes, and first-time buyers remain unable to afford today’s prices, real homeownership takes a hit.
Ah. Investors are buying homes now.
Like investors bought all that land in the early 2000’s and built homes driving up the prices….. and investors bought mortgage portfolios and swapped them back and forth……
We have not recovered. Due to bailouts and continued cheap/free low interest rate and downpayment mortgages, no one involved in the housing bubble learned a lesson.
Investors are now just buying up the homes low to sell high later OR to rent them out rather than buy the mortgages and make interest like they did 10 years ago.
We are headed to another economic recession. Washington has been pumping up the economy and eventually the chickens are going to come home to roost.
Neither Republicans or Democrats can claim they didn’t know. Both parties bailed out those banks – but in truth they did so for different reasons. That’s for another rant.
Point is: Obama has not lead us out of the recession. He prolonged. He kicked the reforms and adjustments down the road. The next few years are going to be very bumpy. We’re heading for another full blown recession again.