Biden’s economy produced worst home market since World War II as values continue to fall – zoohousenews.com
(Natural News) Why Republicans didn’t do better in November’s midterms is debatable, but they should have been under two years of Joe Biden given the country’s dire state and the Democratic control of Congress.
In record time, it seems, our economy has gone from booming and growing under President Donald Trump to one plagued by historic inflation that has seen record prices for gas, food, energy and commodities, not to mention huge losses in savings for Americans as a tank farm The market has wiped out trillions of dollars in value from 401(k) retirement accounts.
But at the same time that prices of just about everything are rising, the value of the single investment most important to most Americans — their homes — has fallen to its lowest level since World War II, thanks to actions the Federal Reserve forced in response to the inflationary economy that Biden and his Democratic Congressional majority have created.
The only way the Fed can dampen inflation is by dampening demand, and the only way the Fed can dampen demand is by making it more expensive to borrow money. The Fed did this by raising interest rates to their highest levels in decades, making it very expensive to finance large items like cars and houses. As a result, car and home sales have plummeted and while car prices remain artificially high, home prices/values have fallen significantly, as reported by Breitbart News this week:
The US housing market is suffering its second-biggest price correction since the end of World War II, and one expert attributed this in part to people’s concerns about economic woes.
According to Macro Trends Advisors founding partner Mitch Roschelle, the correction was due to citizens’ uncertainty and concerns about the economy.
“A few things will cause it to turn in the opposite direction, which means house prices will go up. One is certainty. And if you don’t know if interest rates will go up or not. I think that’s what’s keeping a lot of people from buying because they just don’t know if prices are going to be cheaper in two months time and they’re just going to wait,” Roschelle told Ashley Webster of FOX Business.
“And the other is the uneasiness about the economy. And I think the shoe that would drop there would be when we start to see layoffs and we start to see unemployment start to go up, I think that could be something that breaks down the housing market in a big way leaves,” Roschelle added.
By September, home prices had fallen for the third straight month.
Roschelle said that although house prices are falling, it doesn’t necessarily mean it’s a buyer’s market right now – just that prices are likely lower than they were a year ago.
“So when a house comes on the market that’s perfect and it ticks all the boxes for buyers and there are buyers in the market, I think you might see bidding wars sporadically, but mostly, you know, it’s one or two people chasing this house. And we don’t see that. We’re not,” he added.
Meanwhile, the trend towards large corporations buying up vacant apartments is likely to accelerate as prices fall. Businesses hope to capitalize on a growing rental market as rents rise across the country as fewer Americans seek to buy their own homes. Also, many of the same companies are likely betting that home prices will rise again so they can sell those homes for a bigger profit.
In any case, all of this market instability in the housing industry was directly caused by Democratic policies and massive spending legislation passed by Democrats that have created an inflationary economy that did not exist under Trump.