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But, hey, we hit bottom, the rebound is just around the corner?
From the Washington Post story linked to above:
““The trend is down and there are few, if any, signs in the numbers that a turning point is close at hand,” said David M. Blitzer of S&P Indices. “I spent the weekend scratching my head and saying, ‘Isn’t there some good number in here?’ ”
The Federal Reserve comment in January:
“Looking forward, continued weakness in the housing market poses a significant barrier to a more vigorous economic recovery,”
(From the same Washington Post article)
In layman’s terms, we are still screwed.
I have been telling my Michigan clients for years, it takes people with jobs to buy houses, and we have been losing them, for years.
Michigan employment is up recently, yes. But auto workers don’t make what they used to, and those who skipped the state, left a lot of unsold homes behind them.
Shadow inventory haunts our state, homes already foreclosed, that have not even been put u for sale yet. Because, the mortgage companies learned the law of supply and demand, the more they put up for sale, the more downward pressure on home prices, and home values continue to decline, even further.
What should a Michigan homeowner do?
You cannot borrow your way out of a debt problem.
Governments can’t, and we can’t.
Don’t cash in retirement accounts like IRAs and 401ks, money creditors cannot get.
Over half the 401k accounts in the country have loans out against them.