Housing Recovery? What Recovery?

[Smaulgld]

Home sales were down 3% in 2014, yet the housing "recovery" narrative drones on.
Here is a break down of the housing market in 2014 and an out look for 2015.

https://smaulgld.com/false-housing-recovery-2014/

[Zippyjuan]

That is new home sales. What about existing home sales (which are up)?

[Smaulgld]

Nope existing home sales down 3 pct
Even if they were flat, 2014 was supposedly a much better year than 2013 for economic and job growth
Hardly a recovery when sales of new and existing homes are flat to down

[Zippyjuan]

Hardly showing economic collapse- buy gold to protect yourself- either. Housing sale are just one area of the economy.

[Smaulgld]

Hardly showing economic collapse- buy gold to protect yourself- either. Housing sale are just one area of the economy.

Home sale should be indicative of the health of the economy If people are doing well they can buy houses. in 2014 we were told jobs and GDP were grand, yet home sales sank.

ALSO QE and ZIRP was supposed to drive housing and in turn drive the economy, it didn't

[VIDEODROME]

I'm buying a gold house

[Smaulgld]

I'm buying a gold house

gold and primary residences are assets not investment -neither produce income and must be stored insured and maintained

[Zippyjuan]

What is an investment? Buying something with the hope of selling it at a higher price in the future? If so, a home can qualify. Gold qualifies. Offer a financial return while you still own the asset? (Stocks unless they are dividend paying don't give you any returns until you sell them)? Buying a home can improve your financial situation. It worked for me. After my home was paid for, my net income (after tax disposable income) increased by about 25%. For as long as I live in the home. What other investment offers me that kind of return? Costs? All investments have costs. Buying and selling. Capital gains costs. In mutual funds, expense fees.

Costs of a home vs renting? All home ownership costs are included in the rent you pay- taxes, maintainance expenses. The owner adds those onto your rent- plus a profit margin for him. When you buy, you get an asset you can later resell instead of the monies you would have been just giving away in rent. Once paid for, you get to pocket the difference between the costs you still have vs the costs of renting a comparable unit. That is a real net gain. Doesn't produce income? My disposable income went up. In my case, I save about $1000 every month that would have been going to rent that I get to keep. Besides having an asset currently worth more than twice what I paid for. That is a pretty good return on my asset in my book.

Owning your own home is probably the best (and usually largest) investment you can make in your life.

[phill4paul]

What is an investment? Buying something with the hope of selling it at a higher price in the future? If so, a home can qualify. Gold qualifies. Offer a financial return while you still own the asset? (Stocks unless they are dividend paying don't give you any returns until you sell them)? Buying a home can improve your financial situation. It worked for me. After my home was paid for, my net income (after tax disposable income) increased by about 25%. For as long as I live in the home. What other investment offers me that kind of return? Costs? All investments have costs. Buying and selling. Capital gains costs. In mutual funds, expense fees.

Costs of a home vs renting? All home ownership costs are included in the rent you pay- taxes, maintainance expenses. The owner adds those onto your rent- plus a profit margin for him. When you buy, you get an asset you can later resell instead of the monies you would have been just giving away in rent. Once paid for, you get to pocket the difference between the costs you still have vs the costs of renting a comparable unit. That is a real net gain. Doesn't produce income? My disposable income went up. In my case, I save about $1000 every month that would have been going to rent that I get to keep. Besides having an asset currently worth more than twice what I paid for. That is a pretty good return on my asset in my book.

Owning your own home is probably the best (and usually largest) investment you can make in your life.

Neither here nor there, I do agree with you to an extent, but the property your house sits on is probably what I see as the better investment of the two. Housing styles come and go and the worth of your home may be lost in the remodel it would take to make it worthy of a "modern" sale. I've seen perfectly good homes, by my standard, torn down because someone wanted a modern/larger/etc. home on that location, location, location.