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What Does Obama's Reelection Mean for the Housing Market?


By Patrick   Follow   Wed, 7 Nov 2012, 12:50pm PST   1,887 views   18 comments
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http://www.sacbee.com/2012/11/07/4968211/what-does-obamas-reelection-mean.html

The nation's unemployment rate is still hovering around 8%, and we've seen that the housing market is directly tied to the jobs market. - The U.S.. dollar grew weaker on Tuesday night, as word of Obama's reelection spread. Right now, economic experts say that's a sign that the uncertainty has been lifted, and world markets are selling more of their stocks. In the long run, though, no one knows for sure how a weak U.S.. dollar is going to affect the world markets -- and, in turn, how the world markets are going to affect our economy here at home....

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Automan Empire   Wed, 7 Nov 2012, 1:19pm PST   Share   Quote   Permalink   Like (1)   Dislike (1)     Comment 1

This is going to greatly increase housing inventory.

It totally stands to reason. Just think of all the Republicans you've heard swear that they were moving out of America if Obama was reelected?

thomaswong.1986   Wed, 7 Nov 2012, 1:39pm PST   Share   Quote   Permalink   Like (2)   Dislike     Comment 2

what was true in 2009 is still true today.. govt intervention in the housing market.

with no end in sight... govt sponsored hype and policies to inflate home prices.

Frankly, only two people publicly stated that home prices needed to find their
natural market bottom unimpeded by govt. That was Hank Paulson and
later Mitt Romney.

Meccos   Wed, 7 Nov 2012, 2:00pm PST   Share   Quote   Permalink   Like (3)   Dislike     Comment 3

thomaswong.1986 says

what was true in 2009 is still true today.. govt intervention in the housing market.

with no end in sight... govt sponsored hype and policies to inflate home prices.

Frankly, only two people publicly stated that home prices needed to find their

natural market bottom unimpeded by govt. That was Hank Paulson and

later Mitt Romney.

So did Ron Paul

thomaswong.1986   Wed, 7 Nov 2012, 3:21pm PST   Share   Quote   Permalink   Like (2)   Dislike     Comment 4

Meccos says

So did Ron Paul

+1 makes 3... thanks

uomo_senza_nome   Wed, 7 Nov 2012, 3:39pm PST   Share   Quote   Permalink   Like   Dislike     Comment 5

http://brucekrasting.com/odds-go-up-for-mortgage-mods-post-election/

bmwman91   Wed, 7 Nov 2012, 3:53pm PST   Share   Quote   Permalink   Like   Dislike     Comment 6

Just out of curiosity, if there were to be widespread debt-forgiveness measures, could they lead to higher inventories? If people were above water, they could sell, and I have to imagine that there are a lot of people that might want to do just that if they could afford it. Wishful thinking, I know, but how about it?

curious2   Wed, 7 Nov 2012, 4:04pm PST   Share   Quote   Permalink   Like (1)   Dislike     Comment 7

thomaswong.1986 says

people publicly stated that home prices needed to find their
natural market bottom unimpeded by govt. That was Hank Paulson and
later Mitt Romney [and Ron Paul]

Unfortunately, Republicans failed to nominate Ron Paul, and there was no correlation between what multiple-choice Romnesia said and did. So, at least six more years of Fed ZIRP and QE∞. Probable result: house prices remain propped up relative to consumer prices, until stagflation causes consumer prices to increase and normalize the ratio. Alas wages might not keep pace, so living standards may decline. But hey, you'll have mandatory medical insurance! Unfortunately, the mandatory diversion of resources into medical will come at the expense of all other sectors, prolonging the need to prop up house prices. Look on the bright side: at least the hospital administrator who overcharges you will be able to afford a house, and so will the insurance executive who denies your claim! Pity that you might not be able to afford a house after all that, but hey, you have insurance!

thomaswong.1986   Wed, 7 Nov 2012, 4:50pm PST   Share   Quote   Permalink   Like   Dislike     Comment 8

curious2 says

Look on the bright side: at least the hospital administrator who overcharges you will be able to afford a house, and so will the insurance executive who denies your claim! Pity that you might not be able to afford a house after all that, but hey, you have insurance!

I already have a house..nice one! but your argument goes nowhere.. Its another attempt to ignore any idea of a housing bubble or that prices had a historical pattern.

curious2   Wed, 7 Nov 2012, 5:11pm PST   Share   Quote   Permalink   Like (1)   Dislike     Comment 9

thomaswong.1986 says

your argument goes nowhere.. Its [sic] another attempt to ignore any idea of a housing bubble or that prices had a historical pattern.

What?!? Your comment is truly bizarre. When have I ever denied that there was a housing bubble? I've pointed to Case Shiller data many times. Even in my post above, I said prices are still propped up now. You seem to be boxing with shadows and straw men rather than reading what people have actually written.

PockyClipsNow   Thu, 8 Nov 2012, 1:59am PST   Share   Quote   Permalink   Like (1)   Dislike     Comment 10

Obama makes house prices rise. Even more loan mods and principal reductions will keep inventory off the mls permanently. Underwater squatting for four more years everywhere!

michaelsch   Thu, 8 Nov 2012, 3:02am PST   Share   Quote   Permalink   Like (1)   Dislike     Comment 11

SFace says

Housing Policy: He will continue the same kind of policy to support housing, like HAMP and Fannie/Freddie

Mortgage interest rates: He and Bernanke will continue easy money policies. sign of econonomic weakness and we will see QE4.

Yes and No.

You are generally right, they will try to reinflate. However, I believe that recent attempt of pooring money into the economy were not 100% genuine. They where at least partially driven by the reelection concerns. This part is gone now. Thanks God, Romney disaster has been successfully averted.

For the last four years Obama had to be concerned about his reelection, which made him more populist than he would be. That's the problem with any first term President.

All this means is that the monetary inflation should slow down in the next couple of years, which means cheaper stocks etc.

BobMSN   Thu, 8 Nov 2012, 4:23am PST   Share   Quote   Permalink   Like   Dislike     Comment 12

Obama tried every means to keep the housing price in float by destroying the true housing market.

He's now re-elected. Anyone thinks he will keep doing that?

zzyzzx   Thu, 8 Nov 2012, 4:31am PST   Share   Quote   Permalink   Like   Dislike     Comment 13

SFace says

Obama made it clear he wants to tax those earning more than 250K a year, but those below are safe.

Did he even say that once during his re-election campaign????

michaelsch   Thu, 8 Nov 2012, 4:55am PST   Share   Quote   Permalink   Like   Dislike     Comment 14

BobMSN says

Obama tried every means to keep the housing price in float by destroying the true housing market.

He's now re-elected. Anyone thinks he will keep doing that?

Yes, but much less agressively, since it was partially done for the populist reasons, which are gone now.

michaelsch   Thu, 8 Nov 2012, 4:56am PST   Share   Quote   Permalink   Like (2)   Dislike     Comment 15

LiarWatch says

PockyClipsNow says

Obama makes house prices rise.

Considering prices have resumed their decline tells me Obama isn't very good at making them rise.

Which is very good.

Goran_K   Thu, 8 Nov 2012, 4:59am PST   Share   Quote   Permalink   Like   Dislike     Comment 16

Both candidates avoided much talk about the housing market (arguably one of the biggest drags on the economy currently). Very peculiar.

Strategic Renter   Thu, 8 Nov 2012, 5:06am PST   Share   Quote   Permalink   Like   Dislike     Comment 17

Housing is only 2% of the economy. Whatever happens its effect is minimal. Especially as any rise will simply mean buyers are still underwater

michaelsch   Thu, 8 Nov 2012, 5:10am PST   Share   Quote   Permalink   Like (1)   Dislike     Comment 18

zzyzzx says

SFace says

Obama made it clear he wants to tax those earning more than 250K a year, but those below are safe.

Did he even say that once during his re-election campaign????

Do not fool yourselves. Taxes must rise. For everyone. There is simply no way out of our current deficits w/o raisng taxes. The only way to delay it is a huge monetory inflation followed by the price and income inflation.

If we go that way we'll simply fall into the >$250K income without getting real income increase and we'll pay high taxes. Look at the AMT, for a good example of how such things work.

BTW, only a fool would think it would be anyhow better with Romney. In the past there could be some differences between Reps and Dems. Dems wanted to tax and spend, Reps wanted to cut. The only diffrence today is: Dems print and spend, Reps spend and print. They also spend slightly differently: Reps spend on wars and print, Dems print promising to spend on climate change.

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