- FAMILIES OF DECEASED SEAL TEAM 6 MEMBERS ARE MAKING SERIOUS ALLEGATIONS AGAINST THE GOVERNMENTPosted 10 days ago
- European Commission to Criminalize Nearly all Seeds and Plants not Registered with GovernmentPosted 11 days ago
- After the Tragedy in Boston, More Government Surveillance is Not the AnswerPosted 12 days ago
- Video: Obama To Ohio State Grads-Reject Voices That Warn About Government TyrannyPosted 12 days ago
- AMERICANS FEAR GOVERNMENT MORE THAN TERRORPosted 19 days ago
- The Art of Catching Government False Flags in Real TimePosted 20 days ago
- SECRET GOVERNMENT DOCUMENTS REVEAL VACCINES TO BE A TOTAL HOAXPosted 25 days ago
- WIKILEAKS: THE GOVERNMENT IS SPYING ON YOU THROUGH YOUR IPHONEPosted 35 days ago
- Poll: Close to 1 in 3 Americans Believe in World Government and a New World OrderPosted 45 days ago
- US Government Sued For Pesticides Killing Millions Of BeesPosted 53 days ago
Home Prices Will Zigzag For Years
December home prices were up 11.8 percent year-over-year, the largest gain since 2006, according to RadarLogic’s latest RPX monthly housing market report.
But this isn’t a “real and sustainable” recovery according to Quinn W. Eddins, Director of Research at RadarLogic.
For that, we need a rise in home prices that are driven by job growth and improving consumer confidence.
In the absence of this, Eddins says rising home prices will impact demand, cause a rise in supply and then reduce the pace of rise in home prices or even reverse it.
Eddins expects home prices to temporarily decline again this year, but a decline will prompt speculative demand cool housing starts and sales.
“Home prices are likely [to] follow such a saw-tooth pattern for a number of years, until consumer demand increases and inventories of distressed homes return to historical norms,” writes Eddins.
Though Eddins does warn that the impact of investors on this saw-tooth pattern is hard to estimate.
Corporate investor transactions (purchases) increased 62 percent year-over-year in November 2012, driven by financial institutions building their portfolio of rental homes. These purchases accounted for 12 percent of all transactions in 2012, up from 8 percent the previous year.
What’s more, all transactions were up just 8 percent, while non-corporate investor purchases were up just three percent.
“While the overall RPX transaction count may suggest a healthy gain in sales activity, most of that gain took the form of purchases by corporate investors. When we look only at non-investor purchases, the year on year gain is much less remarkable.”
Sales last year were driven by investor activity, low interest rates, and a shift in sales mix and none of this is expected to have a lasting impact on home prices.