The Mysterious New Housing Bubble


By Bob Jones   Follow   Wed, 19 Dec 2012, 10:53pm   2,439 views   27 comments
In Holbrook NY 11741   Watch (1)   Share   Quote   Permalink   Like (2)   Dislike  

http://www.counterpunch.org/2012/12/18/the-mysterious-new-housing-bubble/

The rebound in housing is now in full swing. Housing starts are up, existing home sales are gaining pace, inventory is down, and prices are on the rise. According to a recent report by Corelogic “House prices are up 6.3% year-over-year in October, the largest increase since 2006 and the eighth consecutive increase in home prices nationally on a year-over-year basis.” Many experts are now predicting that 2013 will be even better, in fact, J.P. Morgan thinks that prices could gain another 10 percent in the next 12 months. Here’s the story from the Wall Street Journal:

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  1. monkframe


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    1   8:59am Mon 24 Dec 2012   Share   Quote   Permalink   Like (2)   Dislike  

    Excellent article. I've been wondering what's behind the obviously coordinated propaganda campaign seeking to reassure the public that the housing market is "coming back."

  2. The Professor


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    2   9:37am Mon 24 Dec 2012   Share   Quote   Permalink   Like (3)   Dislike   Protected  

    The fed is producing a HUGE amount of money. This money is trickling down to a select few who are using it to buy up REAL property with fiat paper enriching the owner class while further impoverishing the working class.

  3. Kevin


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    3   12:37pm Mon 24 Dec 2012   Share   Quote   Permalink   Like (4)   Dislike  

    monkframe says

    Excellent article. I've been wondering what's behind the obviously coordinated propaganda campaign seeking to reassure the public that the housing market is "coming back."

    There is no "coordinated propaganda campaign", except maybe in your head.

    What we have right now are artificially low interest rates, courtesy of the fed. This is what's driving housing at present. You can borrow nearly twice as much today as you could have 4 years ago for the same payment.

    This is intentional. It's the policy. It's what the fed wants to happen. The alternative was to let homeowners sit underwater for years, thus preventing move-up buying and generally keeping trillions of dollars per year out of the economy.

    You can debate the approach all you want, but to pretend that there's something sneaky or dishonest going on is pure bullshit. What's happening is exactly what Bernanke said he wants to happen and what he got the blessing of the white house, treasury, and congress to do.

  4. Mark D


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    4   3:07pm Mon 24 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    E-man says

    How can it be mysterious when everyone knows about it?

    "mysterious" is subjective... etc. etc.

  5. Kevin


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    5   4:55pm Mon 24 Dec 2012   Share   Quote   Permalink   Like (3)   Dislike  

    Yeah, if somebody is a total moron, everything seems mysterious.

  6. bmwman91


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    6   7:39pm Mon 24 Dec 2012   Share   Quote   Permalink   Like (4)   Dislike  

    Although I don't want to encourage someone's condescending attitude, I have to agree that there is nothing mysterious going on. What we are seeing is a result of openly-stated policy. The media DOES cheerlead overpriced RE both because they make a shit ton of money on RE ads, and because 60%+ of America "owns" RE and love to hear feel-good BS about how they are growing their paper wealth.

  7. Kevin


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    7   9:51pm Mon 24 Dec 2012   Share   Quote   Permalink   Like (1)   Dislike  

    I think you give the media too much credit. They don't want to offend advertisers, but they don't really think too much about them.

    What "they" (by which I mean mainstream, televised / printed news sources) do do, however, is draw really basic conclusions.

    House prices down from peak, interest rates very low? Looks like a good time to buy a house.

    Expecting the same organization that spends most of the day talking about Kidnapped Little White Girl to do a really thorough, thoughtful investigation into the real estate market is futile.

  8. bmwman91


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    8   12:24am Tue 25 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    True. TV "news" is nothing more than infotainment. Most people want to hear that housing is "good" because most people are paying on a loan for one. TV stations gotta show what sells.

  9. The Professor


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    9   6:54am Tue 25 Dec 2012   Share   Quote   Permalink   Like   Dislike   Protected  

    The mass of people that don't own are paying rents that are higher than the mortgage on their home would have been. Rent is rising and wages are stagnating. Good paying jobs are being replaced by low paying jobs.

    Hoping for peace on earth and good will to all mankind. Merry Christmas.

  10. everything


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    10   12:57pm Tue 25 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    I understand the fed giving money to investors to buy/bid up the market and take it for their own. With more RE owned by heavier hands it will be a stronger/stable market. With another good bout of inflation more will be priced out for life. Still, a renters society is not bad, our national debt is basically rented, it's just the way things work out in the capitalistic societies where only certain classes (those with access to piles of money), are allowed to buy now and pay later, yet also force the lower/middle classes to absorb all the costs associated with renting/borrowing the money.

  11. taxee


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    11   2:03pm Tue 25 Dec 2012   Share   Quote   Permalink   Like (1)   Dislike (1)  

    Let's get some naive, eager, twenty somethings to sign up for thirty years of servitude and we can call it an economy. Worked on the last bunch.

  12. bmwman91


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    12   3:59pm Tue 25 Dec 2012   Share   Quote   Permalink   Like (1)   Dislike  

    taxee says

    Let's get some naive, eager, twenty somethings to sign up for thirty years of servitude and we can call it an economy.

    Nope, they have a MUCH more solid demographic piling cash into it all now. The investor class has cash and they are pumping it in as fast as they possibly can. Once they own it all, they can extract rent from the people without limits. Just wait until Wall Street lobbyists push all renter-protection laws out of the books and replace them with legal indentured servitude. Welcome back to the 1920's folks.

  13. taxee


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    13   8:43pm Tue 25 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    bmwman91 says

    Let's get some naive, eager, twenty somethings to sign up for thirty years of servitude and we can call it an economy.

    Nope, they have a MUCH more solid demographic piling cash into it all now. The investor class has cash and they are pumping it in as fast as they possibly can. Once they own it all, they can extract rent from the people without limits. Just wait until Wall Street lobbyists push all renter-protection laws out of the books and replace them with legal indentured servitude. Welcome back to the 1920's folks.

    Is the insurance fraud game over already? I thought they had just perfected it.

  14. rfsanders


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    14   10:15am Wed 2 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    bmwman91 says

    True. TV "news" is nothing more than infotainment. Most people want to hear that housing is "good" because most people are paying on a loan for one. TV stations gotta show what sells.

    I worked in TV news for a couple years. Here's what it is: A bunch of 22-year-old college grads who want to be the TV anchor, but instead work for $11/hour with no benefits -- churning out crappy scripts, working horrible hours, and missing Christmas -- until they can't take it anymore, and quit to take a "real" job.

    The only reason station owners hire 6-figure anchors (and it's usually very LOW 6-figures) is to maintain the illusion of credibility. There was a time 20-years ago when local TV news had serious newsrooms. Today it's just interns and underpaid, abused college grads churning out scripts -- chasing the rainbow. Quit? No worries. There's a million more college grads who want a shot at the scam.

    Newspapers are little better. Cable news might be able to hire a few more high-end producers, but it's not to enlighten --- it's to enslave. How can we attract the eyeballs to the screen just a little bit longer than CNN?

    If you aren't paying for the product, you ARE the product. Nearly ALL media in the United States isn't about you --- it's about SELLING you. And that's why I can't trust anything I read, view, or hear. And I WORK in the business.

    Don't trust news re: housing. Okay, end of rant. Back to housing.

  15. bmwman91


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    15   10:34am Wed 2 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    rfsanders says

    If you aren't paying for the product, you ARE the product.

    Thanks for the post. This has to be the single best summation of TV.

  16. Call it Crazy


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    16   10:41am Wed 2 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    bmwman91 says

    Thanks for the post. This has to be the single best summation of TV.

    Not only TV, and newspapers, internet, facebook, radio, and every other media source, etc......

  17. bmwman91


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    17   10:54am Wed 2 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    Call it Crazy says

    bmwman91 says

    Thanks for the post. This has to be the single best summation of TV.

    Not only TV, and newspapers, internet, facebook, radio, and every other media source, etc......

    Indeed. This definitely reaffirms my decision to not own a TV (haven't watched it on any sort of regular basis since I was

  18. monkframe


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    18   10:08pm Thu 3 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    "There is no "coordinated propaganda campaign", except maybe in your head."

    That is followed by your analysis of the background of a coordinated campaign to pump up the housing market. Maybe it will work. Maybe not. I hope for the best, but I don't expect human behavior to conform.

  19. JodyChunder


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    19   11:48pm Thu 3 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    Kevin says

    The alternative was to let homeowners sit underwater for years, thus preventing move-up buying and generally keeping trillions of dollars per year out of the economy.

    Nah. Some better alternatives might have included: mortgage modifications, including second lien reductions/cancellations or forcing the banks to agree to and expedite more short sales.

    At this rate, most homeowners -- at least ones who purchased between 2000-2007 -- are still going to be sitting/squatting underwater for many years to come.

  20. JodyChunder


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    20   11:52pm Thu 3 Jan 2013   Share   Quote   Permalink   Like (1)   Dislike  

    bmwman91 says

    Indeed. This definitely reaffirms my decision to not own a TV (haven't watched it on any sort of regular basis since I was

    The suspense is bugging me..."since I was..." what?? Since you were what?!!!

    It's okay to not own a TV, but you don't actually want to be one of those guys who mentions it too often. I know you know the type. Like my son in Washington, who thinks he's so cool and tweedy because he doesn't own/watch 13 hours of TV a day like his old dad.

  21. B.A.C.A.H.


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    21   10:42am Fri 4 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    rfsanders says

    I worked in TV news for a couple years

    sanders, you should write a book about your experiences, just be careful to sanitize it to protect yourself from a lawsuit.

    Peter Buffington wrote such a book about working in a different "glamour" industry in his pursuit of a glamorous career as an airline pilot. It's called Squawk 7700. Your post about the TV business sounds like it has some parallels in the "pursuit of a glamorous career". Kinda makes me wonder about all the silicon "Valley Talk" which is nearly completely coming from folks who moved here from outside the region.

  22. bmwman91


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    22   11:10am Fri 4 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    JodyChunder says

    The suspense is bugging me..."since I was..." what?? Since you were what?!!!

    It's okay to not own a TV, but you don't actually want to be one of those guys who mentions it too often. I know you know the type. Like my son in Washington, who thinks he's so cool and tweedy because he doesn't own/watch 13 hours of TV a day like his old dad.

    ...since I was ~18 and living at home.

    Dude, it makes me super cool to talk about how I don't own a TV. Everyone can totally see how free-thinking and independent I am. And I know that most people won't get rid of their TVs, so I am GUARANTEED to remain cool and independent. You see, I do this thing where I post on the internet, and that's TOTALLY underground.

  23. The Professor


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    23   4:17pm Fri 4 Jan 2013   Share   Quote   Permalink   Like   Dislike   Protected  

    I don't own a TV either, but I have three computers that can play dvd's and stream most anything I want commercial free. The Monitor in the living room is 40".

    I don't have cable, HBO or any other broadcast. Am I missing anything?

  24. Goran_K


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    24   7:44pm Fri 4 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    The Professor says

    I don't have cable, HBO or any other broadcast. Am I missing anything?

    If they offered HBO as a stream on the net, I would probably get rid of most cable. I love all the shows they have, Boardwalk Empire being my favorite.

  25. JodyChunder


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    25   10:10pm Fri 4 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    The Professor says

    I don't have cable, HBO or any other broadcast. Am I missing anything?

    I don't have cable either, but when I'm staying in a hotel, I do watch The Weather Channel. At home I watch mostly educational and How To videos. I've been busy lately learning basic Kung Fu in my living room, which, honestly, I'm finding not to be the most practical subject for a DIY approach. It's weird. But at least this particular series has French subtitles, so I'm picking up a little culture to boot! Dropkick après moi!

  26. JodyChunder


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    26   10:23pm Fri 4 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    bmwman91 says

    Dude, it makes me super cool to talk about how I don't own a TV.

    Don't get me wrong - I think it's a healthy thing. The last time I could say it was just after I got out of the Navy in October '73 and hadn't seen hardly any TV or movies in over 4 years. I hadn't thought about how out of touch I was til later that month when I couldn't figure out what the fuck half the trick-or-treaters costumes were supposed to be. There was even a couple of dicks with baseball bats..."I'm Wow-kin' Tawl!" (Walking Tall - this was Texas)

  27. Goran_K


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    27   8:06am Sat 5 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    SFace says

    Look at ROKU.

    Hmm reading their website. This looks very interesting. I'd be interested in getting HULU Plus, HBO Go, and Disney (my son loves it).

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