Real estate housing and economic news round up for 5-17-2013…
Cue the R.E.M.
Had to dig out my copy of Eponymous by R.E.M. and play the it’s the end of the world as we know it to write this part of today’s post. There is no doubt that things are still tough for many Americans. From a recent report from New York University Economics Professor Edward Wolff:
The collapse of home prices and the stock market has taken an immense toll on the assets of the middle class, hitting minorities and young adults especially hard, a new study suggests.
Most telling is that the wealth of the average person by 2010 was at its lowest level since 1969. Inequality of net worth, after almost two decades of little change, rose sharply between 2007 and 2010. Inequalities rose by income class, by race and ethnicity, and across age groups.
So they did a study to find out what most people already know. Things are tough for the middle class. And since that affects the majority of Americans, it also affects the economy. Which in turn affects the housing market.
And since the middle class is feeling the economic downturn the most, then this news really sucks:
As inflation threatens to melt away entirely, consumers keep paying more for one big-ticket item: housing.
Is the decrease in wealth of the average American combined with the continuous increase in housing prices going to mean we are going to see fewer and fewer home owners in the future?
Maybe since the home ownership rate for those under 35 continues to fall
New Guidance on Design and Construction Requirements Under the Fair Housing Act
New guidance released today by the U.S. Department of Housing and Urban Development (HUD) and the Department of Justice (DOJ) reinforces the Fair Housing Act requirement that multifamily housing be designed and constructed so that it isaccessible to persons with disabilities.
Sadly No F Bombs Were Dropped
No money down mortgages are on the rebound. Is this a bad thing? Please read Calm down, “zero down loans” isn’t a cuss word
Just In Time!
Sarcasm alert! If there is a housing bubble, then we want to make sure everyone has an opportunity to get screwed: Mortgage Standards Starting to Ease
HUD to Shut Down for a Week
Probably not going to help either the economy or real estate: Sequester to shut HUD for seven days
$2.2 Billion Sounds Like A Lot
When you first hear that more than 2.4 million checks related to the Independent Foreclosure Review have been cashed or deposited for nearly $2.2 billion, it sounds like a lot. Until you start thinking about how many people were hurt, how much damage was done to our economy, and how much the banks received as a tax payer funded bailout.