The deepest problem with housing today is reverse-circular. In a normal recovery, the drop in mortgage rates unleashes demand. In the aftermath of the Great Recession, too many households are damaged, especially those aged under 40. Inferior replacement of jobs, savings run down, credit damaged, flat wages inhibiting savings. All made worse by credit too tight, especially for two classes of new construction at entry-level: condo and mixed-use. We’ll see if we can have an accelerating recovery without housing. Households themselves … since the 1930s the one reliable way for a family to build net worth has been the prudent purchase of a home even with little (FHA) or nothing (VA) down, modest discipline and patience. Remove housing as that vehicle, and young Americans have this option: paycheck savings handed to the stock market. If you are ready rebuild your wealth and want help overcoming these obstacles give me a call.
Posted on: Tue, 29 Apr 2014 14:12:29 +0000
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