Saturday, June 23, 2012
When Will Home Prices Go Up?
One of the most common questions I get from website visitors is:
"When will home prices go up?"
The answer is simple.
When those blue lines on the right of this chart begin hitting 400,000 per month for one straight year.
Right now the number is 69,000 per month. Even The New York Times which has each one of its fingers and toes crossed for Mr. Obama and his reelection estimate payroll growth will not exceed 182,000 for the next six months.
Also, remember this bit of bad news.
Each month the gain is less than 250,000, the deficit needs to be made up at some point in the future.
Meaning? If times don't change fast the 400,000 figure may grow to 425,000, 450,000, or more.
Also remember the economy needs to create 125,000 jobs per month just to keep up with population growth like immigrants, new college graduates, and other brand new entrants into the job market.
Think of 125,000 as a baseline of zero.
What you see on the chart above is the Obama economy, or a double dip recession the lamestream media still calls a three year old recovery.
Remember the U.S. government says the economic recession ended in June 2009.
Does that sound right to you?