Despite what you might think as you watch MSNBC, CNN or FOX News;
Anyone who reads RR knows that we’ve always preached the Dogma of “Do it Yourself”.
As time grow harder, more and more American families are struggling to insure that they keep a strong roof over their heads.
As we “feed our masses” with lore and loaves and fishes…
We’re getting hammered with hate-mail from building professionals and architects who say that we’re just spreading “doom and gloom” to discourage families from using THEIR services. They claim that the housing market is rebounding and that “everything is just fine”.
They finger-point at the news, where they spread the gospel of “massive gains in housing sales and price increases”.
It’s all “smoke and mirrors”, folks.
Just off the top of my shaved head (which is now seemingly frostbit from all the time I’ve spent playing in the snow lately – “Spring”… my butt…), I can think of several reasons why this position by those professionals is just “crap and pipe-dreams”;
(A) The “housing rebound” is purely “investor driven”. Investors are using low interest rates and suppressed “low” prices to increase their portfolios as they seek further profits. As interest rates and housing pricing rise in response to this, things will begin to curtail and then we’ll see the “housing boom” turn into a “housing bust” again.
It’s going to end badly, guys. Greed sucks. Watch and see.
(B) Speaking of “sucks”… The economy sucks. You have to have a strong economy to fuel a rebound in ANY sector, mush less sustain one. The lackluster economy is going to continue to hammer those who are supposedly the beneficiaries of this “Housing surge”.
If you cannot afford BREAD, how can you afford a housing move?
(C) The Government’s targeted “spending cuts” aren’t going to do anything but harm homeowners. Folks, if you cannot afford to pay your mortgage, you cannot afford to move.
This “alleged upturn” is just knee-jerk. It will not last and it’s completely irrelevant to anything resembling a hope for “housing prosperity” in the near future, much less long-term housing forecasting.
History shows us that “busts” typically follow “booms” – in less than a decade.
Watch and see…
- Housing prices rising, but not a boom (news.theage.com.au)
- Beware the new housing boom (humanevents.com)
- Collapse of The Global Housing Market (creditloan.com)
- Housing Bubble or HOUSING BOOM? Real Estate Forecast: (gurmitbhatia.com)
- “Bad” News in Housing Yesterday… Should You Worry? (themeshreport.com)
- Housing bust damage to last through 2019 (miamiherald.com)