Economic recovery will not occur without a recovery in housing

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  • patriot Cedar Hills, UT
    Oct. 3, 2012 11:58 a.m.

    How exactly is a housing recovery going to EVER occur while unemployment is so high? How is unemployment going to go down as long a business has high taxes and regulations... going higher after Obamacare kicks in fully. So I think the answer here is ... don't expect any recovery of any kind with Obama in charge... just more wealth redistribution and sinking hope.

  • Hutterite American Fork, UT
    Oct. 2, 2012 10:56 p.m.

    Housing needs to be the most unattainable goal there is. At least from an ownership standpoint. My American home was a relatively easy cash purchase. My house at home, in canada, was an ordeal between my wife and I and a bank ran by gruff old scotsmen, with whom I shall have a lifelong relationship. They will suffer no fools, nor the underqualified. I hope the US housing market gets there someday. Here, I am pretty much entitled to home ownership. Back home in canada, I am not. However, my bank will steadfastly remain solvent. And those who should own homes, will do so.

  • SEY Sandy, UT
    Oct. 1, 2012 11:29 a.m.

    This is from Daily Finance:

    "The National Association of Realtors reports that over the 12 months ended in March, nearly 9% of all real estate purchases in the U.S. (by dollar value) were made by buyers abroad. In some markets, real estate professionals are seeing foreign buying at rates more than twice as fast. One real estate agent in Chicago, for example, observed that 20% of the deals he's closed so far this year involved buyers from Canada, Australia, and elsewhere."

    Americans are simply tapped out. Foreign buyers and other speculators are about the only ones willing to lay down cash for housing these days. This is how wealth accumulates into the hands of the super-rich. You can thank the Federal Reserve and their bankster mafia for any "improvement" in the housing market.

  • lost in DC West Jordan, UT
    Oct. 1, 2012 11:00 a.m.

    If our recovery is dependent on a housing recovery, we should be glad barney frank, the precipitator of the housing and economic collapse, is retiring from congress.

    the current BO-extended and exascerbated economic malaise and the late 1980s - early 1990s economic troubles were caused by real estate issues, financed by the banks. Real estate became overpriced in the late 80's-early 90's and gave us the S&L crises. 2006-8 gave us a massive real estate bubble, with RE prices much more out of line than they were in the 80s and 90s, thanks to the artificial stimulus provided by barney's "everybody who wants a house should have one, even if they cannot afford it" push on fannie and freddie to eliminate lending standards.

    So, you may be correct about the length of time it takes to recover from a banking crisis, but let's not forget that the last two were caused by the RE market.

  • Roland Kayser Cottonwood Heights, UT
    Oct. 1, 2012 10:36 a.m.

    I you study economic history you will find that recessions precipitated by a banking crisis are always far deeper and longer than typical business-cycle recessions. Typically growth stays low and unemployment stays high for a full decade after the crisis. That means we're at about the half-way point in our current recession. The fact that we're starting to see some growth is excellent, but we're not out of the woods yet.

  • SEY Sandy, UT
    Oct. 1, 2012 10:32 a.m.

    Housing is still overpriced. QE3 is going to make things even worse because it's basically subsidizing another real estate bubble in an attempt to artificially revive the economy.

  • Shawnm750 West Jordan, UT
    Oct. 1, 2012 9:14 a.m.

    That's a bit like saying, "The patient won't get over their sickness until their fever breaks." Like others have commented on here, the housing market is dependent on the greater economy (or at least should be.) Our over-dependence on the housing market is what led to our economic downturn to begin with. When wages start going up, and job security is more sure, then the housing market will rebound.

  • Twin Lights Louisville, KY
    Oct. 1, 2012 7:33 a.m.

    To be sure, housing is a part of wider economy. But it is somewhat of a trailer for the non-housing economy. Whenever I have seen an economy too dependent on housing, it indicates a bubble. Housing will recover with the wider economy but will likely lag the non-housing sectors a bit.

  • RanchHand Huntsville, UT
    Oct. 1, 2012 6:31 a.m.

    A housing recovery won't occur until people are paid a decent living wage whereby they can afford to purchase a house.