If Homeownership is the American Dream… This is a Nightmare!

I find it contrary that the business/political spinsters are hyping a housing recovery in the name of improving consumer sentiment in hopes of a self-fulfilling prophecy when in fact the individual home ownership rate is now the lowest since 1995 and within a bit more than a percentage point of 33 year lows.

Why hasn’t homeownership increased during the supportive low interest rate environment of the past few years?  Stubborn unemployment, under-employment and concerns over job loss (which may require relocation to find another job) are a major factor.  Another major hurdle in recent years is the requirement of a minimum 20% down payment in order to obtain a loan.  Few have the necessary cash for the required down payment or if they have the cash, they aren’t willing to part with it in a time of economic uncertainty by tying it up in a home which lacks the investment attribute of liquidity.

The conclusion is that while recent economic releases may show increases in consumer confidence and sentiment off a low base, consumer balance sheet‘s and income statements remain a wreck.  Actions speak louder than works and the rising demand for rental housing at the expense of home ownership demonstrates that the American Dream of home ownership is either undesirable or unattainable.

If you’d like additional clarity into your specific equity holdings and the financial or housing markets in general, please contact me at Christine Meder’s Accounting Advisory Services mederchristine1526@gmail.com or tweet me at @christinemeder1.  I’m offering a free 30 minute consultation through the end of August.  #unrbrand

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About Christine Meder
Leveraging my insights and professional experience of 25 years in the accounting profession, I and my firm Christine Meder's Accounting Advisory Services provide our high net worth clients expert advice on their business activities and investments. In addition to performing traditional accounting functions in a confidential manner, I pride myself in giving clients a competitive edge whether it be in running their businesses or managing their investment portfolio. My studies leading up to completion of the EMBA program at the University of Nevada, Reno this August provide me with latest skills and techniques utilized across a broad spectrum of business functions. This breadth of education is complemented with experience as an accountant in the construction, mining, real estate and technology fields during my career. If you are looking for a trusted adviser or consultant in addition to someone you can rely on to properly keep your books, please contact me.

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