5 results found.
Home Prices Have Been Rising for 3 Months, but Nobody has Been Telling You
Over the last 3 months, prices are up in 90 of the 97 markets we analyzed. The average price increase over the last 3 months is 1.1%, or a 4.5% annual rate. This is big news, so why isn't anyone else reporting it? It is because most price indexes are at least 3 months behind what's happening with home prices right now. The Burns Home Value Index (BHVI) gives you a 3-month competitive advantage. We developed the BHVI to answer the question, "What is happening to home prices today?" The answer is, "Home prices are rising!"
Homeownership To Fall 8%
We have done a lot of quantitative and qualitative research on the future of homeownership, and concluded that homeownership is likely to fall eight percentage points, from 70%* in 2005 to 62% in 2015. The American Dream of Homeownership is still alive and well, as confirmed by several surveys, including ours. However, we are going to return to requiring future homeowners to save and to take on debt that they can afford to repay. This will be a shock to some, but we all know it is the right thing to do.
It's About Payment, Not Price!
For those consumers who are waiting to buy a home, are you aware that you could be "priced out" of the market by rising mortgage rates and tighter underwriting, even if home prices fall? Potential home buyers are focused on the wrong metric. They are overly focused on home price because of the tremendous correction that has occurred and the focus on home prices in the media. What consumers and the media are ignoring is the monthly payment, which is absolutely fantastic right now and highly unlikely to get much better. Everyone is just assuming that they will stay low forever.
Why Isn't Housing Recovering?
For nearly two years, corporate profits have been surging, GDP has been growing, and the majority of the key indicators we track have been moving in the right direction. Yet, home sales have remained in the dumps. The indicators that hit closest to home (pun intended) are the ones that housing needs the most. These are the day-to-day realities that keep us feeling glum: job growth is slow, we're in a "Wage-Less" recovery and home values are declining... again.
Federal Debt Explosion = Inflation
There's been a lot of talk about Americans living beyond their means, but it looks like we're just taking cues from our own government. In fact, you are $127,000 more in debt than you thought, thanks to the massive federal debt load. The federal debt has grown every single year since 1957, and the debt has doubled in the last seven years alone. On top of that, we have unfunded Social Security obligations, which has a present value of $16.1 trillion as of January 2010. If we counted that, it would add another $144K to the $127K in federal debt we owe, bringing us to a total of $271K.
5 results found.