Show Menu

Secret #69 – NAR Considers Landlord-Ownership to be “Home Ownership”

 When NAR says they’re fighting for “homeownership,” it seems they’re often fighting for landlord ownership which, mathematically, lowers the real home ownership rate.  For example, the 2017 tax bill removed the 1031 Exchange tax break for most kinds of personal and business property (machinery, trucks, etc.), except for real estate. Some industry insiders say it was the lobbying of the National Association of Realtors that saved the 1031 Exchange for landlords of single-family houses. Remember when you hear that NAR is fighting for “homeownership” that they may be fighting for investor tax breaks that increase landlord ownership and lower live-in home ownership. 76 Secrets of U.S. Home Ownership – Table…

Read more

Secret #68 – 26% of Realtors™ Own Residential Properties for Investment

 According to NAR, in addition to their primary residences, 26% of Realtors “owned other residential properties for investment.” That is, 26% of Realtors are landlords.  NAR, naturally, represents the best interests of its members – residential and commercial brokers, salespeople, property managers, and others engaged in the real estate industry – including the 26% who are landlords. NAR does not represent the best interests of home owners. That’s not their job. Home owners are not members of NAR. NAR, naturally, supports policies to increase house sales and Realtor income – NOT home ownership – except for those home ownership policies that also increase real estate agent income. 76 Secrets of…

Read more

Secret #65 – The Fed Happily Destabilizes Family Wealth to Stabilize Wall Street

 When the Fed wants to pump up the economy it lowers interest rates which increases the demand to buy houses more than the demand for most any other product. Housing prices can skyrocket as we’ve seen in recent years but the Fed doesn’t care because skyrocketing house prices help the Fed reach their maximum-employment mandate and higher house prices don’t affect their stable-prices mandate because the Fed doesn’t include house prices when they calculate price inflation.  When the Fed wants to slow the economy it raises interest rates which reduces the demand to buy houses more than the demand for most any other product.  Home equity is the largest part…

Read more

Secret #64 – The Fed’s Mandate is Stable Prices… EXCEPT House Prices

 House prices have NOT been included in the U.S. Consumer Price Index since 1982.  House prices are one of the most sensitive parts of the economy to interest rates. Nowhere else can you buy something with only 5% down and borrow the rest of the money with a 30-year loan.  Lower interest rates increase the demand for houses more than anything else households buy and that eventually leads to higher house price inflation but NOT higher general inflation as measured by the Fed because house prices aren’t included in how the Fed calculates inflation anymore. That 1982 change in the way the U.S. calculates inflation did, however, help the Fed…

Read more