Tag Archives: Home prices

  • Insider
    © Skypixel | Dreamstime.com

    And the Smart Money Is Already Withdrawing

    New buyers at risk of being the "greater fool"
    by Chris Martenson

    Tuesday, June 4, 2013, 3:07 PM

    9

    Executive Summary

    • The data shows first-time home buyers already beginning to throw in the towel
    • But house "flipping" by amateur investors is coming back into vogue
    • Why we're back in a housing bubble
    • Big funds are beginning to exit retail housing due to too much "stupid money"
    • The risks every home buyer (and homeowner) needs to be aware of right now

    If you have not yet read Part I: Housing Prices are Being Dangerously Distorted by Big Institutional Money available free to all readers, please click here to read it first.

    The Impacts

    As noted in the Salt Lake City anecdote above, one obvious impact of all this institutional money is that it is preventing ordinary people from buying a home because they cannot compete with the big money firms:

    Blackstone, other investors snap up thousands of Tampa Bay rental homes

    Ken and Susan Beran embodied that old idea of the American dream. They married. Built a house. Raised a daughter within its walls. But after 30 years, as Ken eyed retirement, the Berans envisioned a different dream.

    In December, they moved to a new home — this time, to rent. Ken said he can't imagine ever buying a home again. Susan, a first-grade teacher, hasn't felt so calm in years. "I'm leaving a building I had to maintain, had to stress over," Susan said. "I'm taking all of my memories with me."

    Bad credit, ravaged savings and evolving attitudes are driving more Americans to rent houses, and big-money investors are waging war to win their business. Few are mightier than the Blackstone Group, which dropped $150 million to buy 1,000 Tampa Bay homes — in just the last six months.

    The New York-based private equity giant has already bet $3.5 billion across the country that the housing crisis has fundamentally changed the way many families live. Once-proud homeowners like the Berans, they believe, are beginning to reject home ownership altogether.

    It seems entirely wrong to me that the Fed bailed out big banks and made money excessively cheap for institutions, and that this is being used to price ordinary people out of the housing market.  Said another way, the Fed prints fake money out of thin air and some companies use that same money to buy real things like houses and then rent them out to real people trying to live real lives.

    Recently it was shown that the number of first-time homebuyers has fallen by 25% as these typically low-end buyers have retreated in the face of higher prices. 

    Not exactly the sort of 'spin' you usually read on that story, but it's more honest than trying to claim that the recent price hikes are due to improving consumer confidence and an economic recovery…

    Enroll Now
    Or Sign In with your enrolled account.

    Read More »

  • Blog
    © Neil Lockhart | Dreamstime.com

    Housing Prices Are Being Dangerously Distorted by Big Institutional Money

    Do we really want to live through Housing Bubble 2.0?
    by Chris Martenson

    Tuesday, June 4, 2013, 2:20 PM

    28

    The airwaves are full of stories of economic recovery. One trumpeted recently has been the rapid recovery in housing, at least as measured in prices.

    The problem is, a good portion of the rebound in house prices in many markets has less to do with renewed optimism, new jobs, and rising wages, and more to do with big money investors fueled by the ultra-cheap money policies of the Fed.

    Read More »

  • Podcast

    Patrick Killelea: What Every Homebuyer (and Homeowner) Should Know Now

    Beware today's investor-led 'recovery'
    by Adam Taggart

    Saturday, November 3, 2012, 2:14 AM

    5

    For many, the collapse of the housing bubble was the trigger that began the era of economic slowdown Americans find themselves mired in.

    But recently there have been growing reports in the media of a housing "recovery." So we've invited Patrick Killelea, founder of the popular housing site Patrick.net and author of The Housing Trap: How Buyers Are Captured and Abused and How to Defend Yourself, to clarify the situation.

    The short answer is this: While there are some markets where home prices are back in line with both fundamental and historic norms, buyers still need to exert caution when making a purchase.

    Read More »

  • Blog

    Daily Digest 1/25 – Home Prices Declined, U.K. Economy Shrinks in Winter Freeze, CA & EPA Work on Auto Standards

    by DailyDigest

    Tuesday, January 25, 2011, 4:00 PM

    0
    • The Great Debt Shift
    • Silver Coin Sales, ETF Outflows Show Divergence In Market
    • Home Prices in U.S. Declined 1.6% From Year Earlier
    • US Stocks Open Lower As Blue-Chip Earnings Weigh
    • January Consumer Confidence Jumps
    • U.K. Economy Unexpectedly Shrinks in Winter Freeze
    • California, EPA to Work on Joint Auto Standards

    Crash Course DVDOwn the Crash Course Special Edition Set with Presenter’s Pack (NTSC or PAL)

    Read More »

  • Blog

    Daily Digest 1/1/11 – Home Prices High, 2011 Forecast, Forever Stamps for USPS

    by DailyDigest

    Saturday, January 1, 2011, 4:00 PM

    0

      
Happy New Year!

    • Home Prices Are Still Too High
    • Pensioner Insolvency Rises Fastest As Baby Boomers Struggle To Pay Off Debts
    • Families £3,000 Worse Off
    • The Only 2011 Forecast With A Bizarro Chance Of Getting It All Correct
    • China Slows As Tightening Start To Bite
    • Forever Stamps Tell Us Much
    • Estonia’s Entry Expands Euro Into Former Soviet Union

    Get started building resilience into your life with our ‘What Should I Do?’ guide

    Read More »

  • Blog

    Daily Digest 12/30 – Pension Bailout Plan, Home Prices Teeter, Gas Prices Up

    by DailyDigest

    Thursday, December 30, 2010, 4:00 PM

    0
    • Council Unveils Latest Pension Bailout Plan (Pittsburgh)
    • Pensions Issue Overshadows USPS Outlook For 2011
    • Home Prices Teeter on a Double Dip
    • Retirement Plans Put State In Financial Bind (North Carolina)
    • Gas Prices Heading Up From 3 Dollars
    • Blackouts, Petrol Shortage And Cash Woes As New Year’s Approaches (Argentina)
    • Gramley Says Plosser, Fisher May Dissent From Fed Ease Plan

    Get started building resilience into your life with our ‘What Should I Do?’ guide

    Read More »

  • Blog

    Daily Digest 12/27 – Home Prices Fell, UK Inflation, Deepwater Horizon’s Final Hours

    by DailyDigest

    Monday, December 27, 2010, 4:00 PM

    0
    • Home Prices Probably Fell, Baring Weak Link in Accelerating U.S. Recovery
    • Foreign Central Banks’ US Debt Holdings Rise – Fed
    • The UK Inflation Genie is Out of the Bottle
    • Mauldin: Some Thoughts on Market Timing
    • Gold Advances as Investors Buy After Dip on China Rate Rise Boosts Appeal
    • Central Arkansas Growing Weary Of Relentless Tremors
    • Deepwater Horizon’s Final Hours

    Crash Course DVDOwn the Crash Course Special Edition Set with Presenter’s Pack (NTSC or PAL)

    Read More »

  • Blog

    Daily Digest 12/1 – Spain, Italy Face Bonds Pressure, Russian Debt to Rise, Record for Silver Eagle Coins

    by saxplayer00o1

    Wednesday, December 1, 2010, 5:00 PM

    0
    • Spain, Italy Now Face Bonds Pressure
    • Cost Of Insuring Italian Bank Debt Marches Higher
    • S&P threatens Portugal Downgrade
    • Trichet Says EU’s Resolve on Euro Shouldn’t Be Underestimated
    • IMF’s Lipsky: Euro `Solid,’ Threat `Wildly Exaggerated’ -Bloomberg
    • Newport: Home Prices Not Even Close to Bottom
    • Fed’s Kocherlakota Says Economy ‘Decelerated’
    • Russian Debt Set to Rise to 16% of GDP by 2012: Bond Prospectus
    • Hedge Funds Bet Against Euro, Shirk CDS, in Crisis
    • Portugal’s Banks Pile Up Sovereign Debt
    • Portuguese Central Bank Warns of ‘Intolerable Risk’ (Audio)
    • US Mint’s Silver Eagle Coins Set for Record in Nov.
    • Interesting Melt Values for Old Silver Coins Listed at Coinflation

    Get started building resilience into your life with our ‘What Should I Do?’ guide

    Read More »

  • Blog

    Daily Digest – June 30

    by Davos

    Tuesday, June 30, 2009, 2:46 PM

    0
    • Keeps Getting Better All the Time (Video)
    • Deficit forces California to issue IOUs
    • China’s banks are an accident waiting to happen to every one of us (H/T Fujisan)
    • U.S. Home Prices Drop 6.8 Percent in April as Foreclosures Rise
    • The Net Hubbert Curve: What Does It Mean? (H/T Suzie G)
    • Alan Grayson Letter To Neil Barofsky Requesting Audit of Citi
    • Queasing
    • CRE and Residential RE Prices (Chart on page)
    • US credit card chargeoffs break new record – Moody’s
    • Tales from Bailout Nation (Video)
    • Will banks exiting TARP take back their toxic waste now?
    • Large-scale lay-offs in the U.S. (lay-offs of 50 or greater at 1 time) hit highest level
    • Peter Schiff, Your Record of Inacurate [CNBC] Predictions is Right (Video, H/T iDoctor)

    Read More »

  • Blog

    Daily Digest – Feb 13

    by Davos

    Friday, February 13, 2009, 2:23 AM

    0
    • Comedy (Video)
    • Economist, Rivlin, Marron, Rogogg and Krugman, Kicking the can down the road? (Video, don’t miss the 7:00 – on point and Part II)
    • Primary Bond Market Flow Chart
    • Fed in Talks to Add Primary Dealers as Sales Surge
    • Home Prices in U.S. Slid 12% in Fourth Quarter, Most on Record
    • Greenspan Says He Was Mystified by Subprime Market
    • New Bailout Plan, Paying The Neighbor’s Mortgage, Rallies Market
    • Stimulus plan compromise
    • Will the stimulus actually stimulate? Economists say no
    • More…

      Read More »