2015 (4)

The housing boom may very well be on its way to a bust. As many of you know from news sources the stock market the last couple weeks has been volatile at best. If you step back from the hype and look at the bigger picture, the last couple weeks have resulted in a $2 trillion loss in value. Some analysts are saying that this is a direct result of the collapsing Chinese market. The problem is, many Americans don’t seem to really understand exactly how this will negatively impact local housing prices. Let me explain.

 

First you need to understand that China is NOT a trusted trading partner, even though that is what you are told from certain politicians. Make no mistake, China is a trading adversary and they are hell bent on one long term goal, the collapse of the American dollar as the World reserve currency. Secondly, you need to remember, China is a Communist country. I will admit, Communism in China doesn’t look like it did 30 years ago but, make no mistake, it’s Communism none the less. This results in a highly controlled, highly secretive and highly manipulated market place where free market principals, and ideas are distorted and twisted. This means, that when China reports it’s losses or gains, they should always be viewed with a speculative eye and with cautious concern towards its legitimacy. Unfortunately, that’s not how we have been doing things the past 10-15 years and as a result, we have lost our place in the World as the most power economy and therefore, we are now at the mercy of less friendly countries. Let’s all not forget, China holds an enormous amount of American debt and has been countering America’s currency devaluation policies by issuing their own version of Quantitative Easing.

Now, with all that being said, I hope I have made it clear that China is no friend of the United States because, if you can’t agree with me on this point, the rest of this article isn’t going to make much sense to you.

 

China’s market is in a collapse….a big collapse, no matter what American politicians and Chinese government officials are telling the world. We can see the effects of this collapse very clearly by the crazy ups and downs in our own market. The losses our market is sustaining will negatively impact the revenue streams of Americas largest companies. If they aren’t making gains on the market, they are losing a revenue stream that often times is used for growth of products and services. Essentially, those products and services are sold overseas because American companies are so productive, they have to expand to foreign markets because the American market is heavily penetrated. In other words, if these companies want to continue to grow and make money, they have to open or do business in foreign markets. China is the number 1 buyer of American products and services. This means they purchase more of our stuff than any other country and keep in mind, not only are they the largest buyer of our products and services, they are essentially the last major market. In other words, when China stops buying our products and services, American companies who do business in China are going to feel the hit. So, these American companies taking a double whammy, they lose out on the stock market and then they lose out on the shelf at the store on the street corner.

 

As we all learned from the collapse of our own market in 2007, when companies start feeling the pinch, they start laying off workers and this is where housing prices will be negatively impacted. Simply put, people without jobs can’t pay mortgages and mortgages that don’t get paid go to foreclosure. Large amounts of foreclosed homes drives down prices and people who can still afford to pay their mortgage end up in negative equity, that means they owe more on their home than it’s worth. Now, that doesn’t seem too bad on the surface because you would think that if you just stayed in the home and could pay the mortgage, market will recover in 5 years or so and you would gain your equity back but, don’t forget, mortgages are bundled together and sold on the market as securities. Those securities are held in peoples retirements, no different than the typical diversified funds you likely have at the company who holds your IRA, 401K or whatever group managed retirement account you may have. Then our stock market takes a massive…..some speculate a death blow.

 

Let’s not forget, we have China in the wings, waiting for the first sign of unrecoverable weakness and like a thief in the night, they sell off all their American debt but, it’s not like when your bank sells your mortgage debt to another bank and equal or greater value, it’s a short sale of our debt….and a massive one at that, to the tune of billions and billions of dollars. They flood the world market with cheap, inexpensive, dollars and over night, maybe even in the same day, hyperinflation takes control over here in America and just like in Russia a few months ago, people swarm the banks, try to pull their money out, just to realize, local banks don’t have enough cash reserves to cover everyone’s withdrawal and before you know it, social and civil unrest ensues.

 

I want to be crystal clear here, I am no economist or socio-economic international political expert. I am a self taught, self made man who is trying to read the tea leaves. My opinions are my own and should never be considered financial advice however, it’s not hard for an alert American to look around and see the state of affairs we are in. Not just financially but, socially as well. Our country has been on the wrong track for some time and for some time, we have weathered the storms however, this time it will be different. It will be different because our enemies smell blood in the water. Sure, most Americans are too busy pacifying their children with Ipads, Iphones, I”this” or I”that” to stop and recognize that if they don’t take a more active role in the governance of their country by becoming informed and voting, other less informed, less competent and less liberty loving people will. .

 

In conclusion, the end of 2015 may result in a poor Christmas earnings for American companies due to international market uncertainty. I believe the direct result of a poor Christmas earning season for American companies will be a wave of layoffs 1st quarter 2016. The sign that will tell me that this is starting to happen is the weekly jobless claims. If we see these numbers rise above 300K for a sustained period of two weeks or more, we are in trouble and housing markets will collapse 2-6 months later.

 

 

Jesus "Jesse" D. Gonzalez Broker / Owner TN Lic # 00300859

Liberty House Realty LLC TN Lic # 00262289

1709 Ridgemere Ct. Hermitage Tn 37076

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Email: JGonzalez@LHRLLC.com

Alt Email: JGonzalez@RealTracs.com

Web: www.LibertyHouseRealtyLLC.com

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Welcome-to-Wisconsin-300x225.jpg?width=280Home Sales and Median Prices Grow Substantially in March

The Wisconsin housing statistics are in for the month of March, 2015. Here is an excerpt from what the Wisconsin Realtors® Association (WRA) had to say:


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The Wisconsin housing market grew substantially in March, with both home sales and median prices increasing at a robust pace over the past year, according to the most recent analysis of the statewide housing market by the Wisconsin REALTORS® Association (WRA). Home sales increased 16.1 percent in March 2015 over March 2014, and median prices rose 8.8 percent to $149,000 over that same period. For the first quarter of 2015, existing home sales were 6.7 percent ahead of the first three months of 2014, with median prices in the first quarter up 7.6 percent compared to the first quarter last year.

The market is definitely heating up, and it couldn’t come at a better time as we move into the prime homebuying season,” said Dan Kruse, chairman of WRA board of directors. In a typical year, about 27.1 percent of homes sell in the spring months between March and May. “The economic fundamentals of the housing market have been good for the last several months, and we were expecting solid growth this spring, but double-digit sales growth is impressive,” said Kruse.
~~~~~

Below are the number of Home Sales and Median House Prices for the state of Wisconsin, Dane County, and Rock County. These stats include Janesville and Madison. Feel free to contact me if you have any questions pertaining to these figures. This month both Dane & Rock County's home prices & home sales increased significantly, year over year! If you are thinking of buying or selling, the market is REALLY heating up! Dane County home prices are up (7%)!, while Rock County prices are up (17%)!!!, year over year.


Housing Statistics for the State of Wisconsin:

March 2015
Home Sales: 5,441
Median Home Price: $149,000

March 2014
Home Sales: 4,672
Median Home Price: $137,000

Housing Statistics for Dane County, WI:

March 2015
Home Sales: 601
Median Home Price: $220,000

March 2014
Home Sales: 505
Median Home Price: $205,000

Housing Statistics for Rock County, WI:

March 2015
Home Sales: 188
Median Home Price: $122,500

March 2014
Home Sales: 152
Median Home Price: $103,950

View my report from last month. Wisconsin February 2015 Housing Statistics


Thinking of purchasing a home before prices or rates rise any further? We'd be happy to show you any homes currently listed for sale. Take a look at all available MLS listings below:

Madison Area Home Search   Janesville Area Home Search


With the recent home price increases, now might be the right time to sell your Wisconsin home. Take advantage of your increased equity! Feel free to take a look at our cutting edge Rock Realty Marketing Plan! If you would like some insight into how much your home is currently worth, we would be happy to provide you with a report that gives a close estimate to what your home might sell for in your current local Wisconsin real estate market.

What's your house worth in today's market?

 

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Welcome-to-WisconsinHome Sales and Median Prices Grow in February

The Wisconsin housing statistics are in for the month of February, 2015. Here is an excerpt from what the Wisconsin Realtors® Association (WRA) had to say:


~~~~~
The Wisconsin housing market showed signs of modest improvement in existing home sales in February even as median prices continued to grow at a robust pace, according to an analysis of the statewide housing market by the Wisconsin REALTORS® Association (WRA). Home sales in February 2015 grew 1.8 percent compared to February 2014, and median prices increased 6.1 percent to $137,900 over that same period.

We know the months between December and February are traditionally low-volume months for home sales in Wisconsin, so it’s good to see some improvement over last year,” said Dan Kruse, chairman of WRA board of directors. Comparing December 2014 through February 2015 with that same period in the previous year, winter sales are up about 1.2 percent. “While the state is moving in the right direction, it’s important to remember that sales last year were hampered by very cold temperatures, and so this is really only a slight improvement,” said Kruse.
~~~~~

Below are the number of Home Sales and Median House Prices for the state of Wisconsin, Dane County, and Rock County. These stats include Janesville and Madison. Feel free to contact me if you have any questions pertaining to these figures. This month both Dane & Rock County's home prices increased significantly, year over year, yet again! Dane County still showed an increase of total number of home sold, while Rock County was down slightly, year over year.


Housing Statistics for the State of Wisconsin:

February 2015
Home Sales: 3,482
Median Home Price: $137,900

February 2014
Home Sales: 3,419
Median Home Price: $130,000

Housing Statistics for Dane County, WI:

February 2015
Home Sales: 355
Median Home Price: $215,000

February 2014
Home Sales: 341
Median Home Price: $195,000

Housing Statistics for Rock County, WI:

February 2015
Home Sales: 92
Median Home Price: $111,500

February 2014
Home Sales: 110
Median Home Price: $97,750

View my report from last month. Wisconsin January 2015 Housing Statistics


Thinking of purchasing a home before prices or rates rise any further? We'd be happy to show you any homes currently listed for sale. Take a look at all available MLS listings below:

Madison Area Home Search   Janesville Area Home Search


With the recent home price increases, now might be the right time to sell your Wisconsin home. Take advantage of your increased equity! Feel free to take a look at our cutting edge Rock Realty Marketing Plan! If you would like some insight into how much your home is currently worth, we would be happy to provide you with a report that gives a close estimate to what your home might sell for in your current local Wisconsin real estate market.

What's your house worth in today's market?

 

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Welcome-to-Wisconsin-300x225.jpg?width=300January Home Sales Fall as Prices Continue to Rise

The Wisconsin housing statistics are in for this January of 2015. Here is an excerpt from what the Wisconsin Realtors® Association (WRA) had to say:

~~~~~
Existing home sales fell in January but median prices rose at a healthy pace, according to the most recent statewide housing market analysis by the Wisconsin REALTORS® Association (WRA). Home sales in January 2015 fell by 3.7 percent relative to January 2014, while median prices were up 6.5 percent to $135,000 over the same period.

January is typically our slowest month for home sales, so it’s important to keep this decline in perspective,” said Dan Kruse, chairman of WRA board of directors. A typical January accounts for just 4.8 percent of annual sales in Wisconsin. “With such a small base of sales, a 3.7 percent difference is only 125 fewer sales this January compared to January 2014,
~~~~~

Below are the number of Home Sales and Median House Prices for the state of Wisconsin, Dane County, and Rock County. These stats include Janesville and Madison. Feel free to contact me if you have any questions pertaining to these figures. This month both Dane & Rock County's home prices increased significantly yet again! Both counties were also an exception to state results and had an increase in the number of homes sold, year over year.


Thinking of purchasing a home before prices or rates rise any further? We'd be happy to show you any homes currently listed for sale. Feel free to visit either site below:

Rock County Homes 

Dane County Homes.

With the recent home price increases, now might be the right time to sell your Wisconsin home. Take advantage of your increased equity! Feel free to take a look at our cutting edge Rock Realty Marketing Plan! If you would like some insight into how much your home is currently worth, I would be happy to provide you with a report that gives a close estimate to what your home might sell for in your current local Wisconsin real estate market. Click below:

What's My Home Worth?

Has your home value fallen below what you currently owe? Have you experienced a hardship like divorce or job loss? A short sale may be right for your situation. Visit our distressed property page for more information.

Wisconsin Short Sales


Housing Statistics for the State of Wisconsin:

January 2015
Home Sales: 3,257
Median Home Price: $135,000

January 2014
Home Sales: 3,375
Median Home Price: $126,799

Housing Statistics for Dane County, WI:

January 2015
Home Sales: 336
Median Home Price: $214,750

January 2014
Home Sales: 292
Median Home Price: $205,250

Housing Statistics for Rock County, WI:

January 2015
Home Sales: 110
Median Home Price: $106,950

January 2014
Home Sales: 98
Median Home Price: $98,950

View my report from last month. Wisconsin December 2014 Housing Statistics

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