I don't think so. We see the news that we're rounding the bend but when you look at reality, things don't add up. Sure, after a three billion infusion for used car trade ins at the dealerships, it "looks" like we've gotten over that hump. Now that the glut of unsold new cars is pared down, will we see the factories start back up churning out more? I think not as it would only create another glut. We didn't create jobs with this give away, we got rid of a portion of the glut.
Home sales. HOME SALES ARE UP! shout the headlines. WOW, this is good thing we say... that is until we look at the home prices of the sold houses. Oh my, but that is not a good thing to do. I did a search of MLS listings and the house prices on the unsold units are in free fall. It is no wonder house "sales" are up. When you list a house for 1/4 to 1/3 of it's assessed value, it will eventually sell. The abandoned house next door sold for 102k four years ago. It has been lowered again and now lists at 49.9k. A house on Blane going for just 52k has the notation "70k under assessed value" yet sits unsold.
Businesses are still laying off. Where people gotthe bucks to buy all the new cars is beyond me. What they are trying to do is fool folks in to thinking times are fat once again and in that way entice them into consuming and spending like we did. Sorry, only governments that print their own money are foolish enough to do so. The rest of us will continue to tighten our belts and hunker down while we wait for the otber shoe to drop. And best believe it, that shoe will drop.
I think I was trying to say the same thing, huck...
ReplyDeleterecession-still-far-from-over.html
Back in March, I had a short time frame in which to sell my mom's home. We felt extremely fortunate to find a buyer who had a guaranteed loan. The offer was less than half of what the city assessed. The only homes that are moving are going for far less than their value.
I'm assuming many of the recent car loans could go the route of the repo man as many continue to lose their jobs.
I think the news we hear is what 'they' want us to hear and believe. Things are going better makes everyone feel good. Personally I think we are at a spot of just surviving. Maybe you can sell your house, maybe you can get rid of your car, maybe you won't be laid off, maybe you will find a job. Just surviving.
ReplyDeleteHome sales are up! The comparison of sales in Racine single family properties sold shows an increase of 5.2% for solds in July 2008 as compared to July 2009. In July of 2008, 57 single family properties sold in the City of Racine, 12 were foreclosures, 45 were "arms length transactions". In July 2009 60 single family properties were sold, 31 were foreclosures, 29 were "arms length transactions".
ReplyDeleteIn July of 2008, the average sale price of single family homes in Racine was $115,547. In July of 2009, the average sale price of single family homes in Racine was $89,131. (As reported through Multiple Listing Service, MLS)
REALITY CHECK!!
Turning the corner might be a little premature...making a long, wide turn might be more apt.
ReplyDeleteAs TWON points out, home sales are up. We see in a years time, foreclosure sales went from 23% of total sales to over 63% of total sales. We also know from looking at the sold for prices, the homes sold have sold for 64% OR LESS than their appraised values.
ReplyDeleteFacts are great, and if they are presented certain ways, they can even paint a rosy picture from a sows ear.