- "Potential first-time buyers weren't able to take advantage of the high point in affordability [...]So the wealth effect of the recovery hasn't gone to what could have been new buyers. "
- "The biggest challenge to cracking the housing market for first time buyers is that in much of the country home prices are rising faster than incomes. "
- "“It's a huge problem,” said Leslie Appleton-Young, chief economist for the California Association of Realtors"
While the author is mentioning some facts, he is not stating the obvious conclusions directly:
- There is no such thing as a wealth effect when people have to pay more than they can afford.
- The notion that equity should increase based on market prices increasing faster than revenues is an obvious ponzi scheme financed by new entrants. One shouldn't act surprised that this doesn't work.
- No it's not a problem. Lower prices are a good thing, if you exclude silly realtors.
- We don't need fancy government financing and convoluted credit. We need lower prices.
- There is an obvious lack of new building, particularly in California to keep up with population growth.
- "Potential first-time buyers weren't able to take advantage of the high point in affordability [...]So the wealth effect of the recovery hasn't gone to what could have been new buyers. "
- "The biggest challenge to cracking the housing market for first time buyers is that in much of the country home prices are rising faster than incomes. "
- "“It's a huge problem,” said Leslie Appleton-Young, chief economist for the California Association of Realtors"
http://www.bloomberg.com/news/2014-03-05/americans-shut-out-of-home-market-threaten-recovery-mortgages.html
While the author is mentioning some facts, he is not stating the obvious conclusions directly:
- There is no such thing as a wealth effect when people have to pay more than they can afford.
- The notion that equity should increase based on market prices increasing faster than revenues is an obvious ponzi scheme financed by new entrants. One shouldn't act surprised that this doesn't work.
- No it's not a problem. Lower prices are a good thing, if you exclude silly realtors.
- We don't need fancy government financing and convoluted credit. We need lower prices.
- There is an obvious lack of new building, particularly in California to keep up with population growth.
ACTION REQUIRED: the reporters and editor email addresses are at the end of the article:
Reporters:
Prashant Gopal at pgopal2@bloomberg.net;
John Gittelsohn at johngitt@bloomberg.net
Editor:
Kara Wetzel at kwetzel@bloomberg.net
Tell them what you think.
If enough people do it, maybe we'll be heard?
#housing