Home > American Society, politics > Home Prices Rise : News to Ignore

Home Prices Rise : News to Ignore

If you are giving any credence to the report on home prices increasing by 4.2% as a sign of recovery, then you have a problem.  Media articles on the subject show very positive news for the first 5 lines of each article, then move on to fluff, then reveal the horrible news facing our housing industry.

What they know is that you will not read past the 5th line.  You read the headline, get a good feeling in your gut and move on to the next story. Take a look at The Washington Post article : Homes prices up 4.2% in U.S., 7.3% in Washington area You will notice the story gets very grim after the headline, and for good reason.  The housing market supply and demand figures show that we are on the edge of a cliff.  The government credits helped create this small market improvement and false rise in prices.  As soon as the credits were over, home sales virtually fell off the cliff.

In another article by The Washington Post : New-home sales hit a 40-year low we learn that no one is buying homes right now.  You can say whatever you want about the market, consumer confidence, and the willingness of banks to provided mortgages, but the reality is that none of that is going to help.

So ignore the news of a housing recovery.  It is pure B.S.


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