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Opinion: Why the U.S. housing recovery is built on quicksand
By Keith Jurow
Published: Oct 18, 2018 12:33 p.m. ET
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Weak home sales volume is a serious warning sign
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Home price gains since 2013 have been much less impressive than you think. While reports show that home prices have recovered nationwide, the increase has been uneven and not as strong as you have been led to believe.
Consider RealtyTrac’s latest report on 148 major U.S. metropolitan areas. The average gain on the sale of property was 30%. Not bad, except the average holding period was just over eight years That comes to an annual price increase of 3.75%. High-yield corporate bonds would have earned you considerably more.
Taken together, the average gain for all metros is deceptive.NOOOOOOOOO While the average price gain in booming Silicon Valley was a remarkable 116%, it was a pitiful 2% in El Paso, Texas, 10% in Cleveland, and 15% in Chicago. Even the price rise in the New York City metro area was just 25%. The table below shows the great disparity:
http://www.marketwatch.com/story/the-us-housing-recovery-is-built-on-quicksand-2018-10-17?siteid=rss&rss=1
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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