The housing market has been a key indicator of the American economy for decades; in fact, the collapse of the mortgage lending industry is often blamed for the recent “great recession.” According to Reuters.com on August 20, 2012, “President Barack Obama said on Monday the U.S. housing market was ‘beginning to tick up’ but was still not where it needs to be” (full Reuters.com article).
The “recovery” sentiment was echoed by CNNMoney.com on October 16, 2012;
“The Obama Administration’s efforts to speed housing recovery are showing clear signs of traction,” said Erika Poethig, Acting Assistant Secretary for the Department of Housing and Urban Development (HUD) which releases the report in conjunction with the Department of the Treasury. (full CNNMoney.com article)
Unfortunately, less than a year later, the facts are not so optimistic. On July 30, 2013, Bloomberg.com reported that American homeownership is at an 18-year low. According to ZeroHedge.com on July 30, 2013, the median asking rent for vacant residential units has more than doubled in nearly two-decades.
One would think that skyrocketing rents is a reflection of wages and personal wealth in the United States, but ZeroHedge.com explains that growth in U.S. wages and personal income has plummeted in the last 20-years.
At home, here in Colorado, the situation for homebuyers is difficult as well. According to the DenverPost.com, homes in the $200,000 to $350,000 range are hot and they typically bring in multiple offers over the selling price within 24-hours of being listed. The Denver Post article explained how the “seller’s market” Colorado is experiencing can also be dangerous;
“If buyers are overzealous in purchasing, it’s very quickly an issue,” said Lisa Hier, owner of Hier Appraisals in Castle Rock. “We don’t want to re-create another bubble. I don’t want to blow up a purchase, but if you’re talking about a $25,000 difference, that’s huge and something’s off.” (full Denver Post article)
On May 11, 2013, President Obama addressed Congress and the American people;
“Today, seven years after the real estate bubble burst, triggering the worst economic crisis since the Great Depression and costing millions of responsible Americans their jobs and their homes, our housing market is healing,” Obama said in his weekly address. “Sales are up. Foreclosures are down. Construction is expanding. And thanks to rising home prices over the past year, 1.7 million more families have been able to come up for air because they’re no longer underwater on their mortgages. (full ABC News article)
As with so many other things, the information presented to the public from this administration does not “jive” when compared to the facts. As seen on the video embedded in this article, on July 30, 2013, Obama explained to a cheering Chattanooga crowd that, “…jobs are more important than a paycheck.”
Should the American people continue to believe the rhetoric coming from the White House, or is it time to let the facts speak for themselves?