"The American Dream Is Dead For Everyone But A Happy Few"

Tyler Durden's picture

$250 Million homes in Europe, $150 Million homes in the US, and as Bloomberg notes Million-dollar homes in the U.S. are selling at double their historical average while middle-class property demand stumbles, showing that the housing recovery is mirroring America’s wealth divide. As CoreLogic notes, "the real estate market is the ultimate reflection of confidence, wealth and income," as purchases costing $1 million or more rose 7.8% in March, while sales of homes costing less than $250k plunged 12%, as "the same factors driving the income stagnation in the middle are driving the income momentum at the top." The luxury markets are indeed on fire as foreign (and domestic) super-wealth floods into real estate but as NewEdge's van Batenburg notes, echoing ur very words, "The American Dream is dead for everybody but the happy few who have enjoyed the tailwinds of the appreciating stock market."

 

 

As Bloomberg reports, million-dollar homes in the U.S. are selling at double their historical average while middle-class property demand stumbles, showing that the housing recovery is mirroring America’s wealth divide.

Purchases costing $1 million or more rose 7.8 percent in March from a year earlier, according to data released last week by the National Association of Realtors. Transactions for $250,000 or less, which represent almost two-thirds of the market, plunged 12 percent in the period as house hunters found few available homes in that price range.

 

...

 

“The real estate market is the ultimate reflection of confidence, wealth and income,” said Sam Khater, deputy chief economist at Irvine, California-based CoreLogic Inc. “The same factors driving the income stagnation in the middle are driving the income momentum at the top.”

And here's the thinking that is driving that...

Gary Wasserman, CEO of Troy, Michigan-based Allied Metals Corp., is considering selling two homes in Florida -- one in Naples and another in Miami Beach -- to take advantage of rising prices in the area. He’s also buying a 5,000-square-foot (465-square-meter) condominium in a project under construction in Miami’s Coconut Grove section.

 

...

 

“The stock market is very strong and this is a way to monetize and concretize some gains,” said Wasserman, 64. “We had quite a shock to our collective confidence in 2008 and 2009. The resurgence of the economy has underscored for us that this country remains a very strong place and that the future remains strong.”

But it isn't all shits and giggles in reality... as U.S. home prices climbed 12.9% in the year through February and wages rose only for the top U.S. earners and fell for the bottom 90 percent,

“With the mortgage headwinds and the lack of job growth and everything else that we dealt with through this housing cycle and now into the recovery, the typical first-time buyer got kneecapped,” Jeff Mezger, CEO of the Los Angeles-based company, said on a conference call in March. “So there is no demand there, and we found a way to go flex up and change product and move as quickly as we could to where the demand was.”

 

...

 

“First-time homebuyers are paying retail price, investors are getting wholesale pricing,”

 

...

 

“The American Dream is dead for everybody but the happy few who have enjoyed the tailwinds of the appreciating stock market,” said Robbert van Batenburg, director of market strategy at New York-based Newedge, a multi-asset broker-dealer that published a note to clients last month on the unequal housing recovery. “On the low end, home sales are still making fresh lows every single month.”

The bottom line is that unless you made a fortune in unrealized wealth in stocks over the past few years, you are now priced out of buying a home... and even those with gains are 'rotating' into the real estate market lifting the dream further away and on more and more fragile stilts...

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thamnosma's picture

The new feudalism.

TeamDepends's picture

Hobosexuals have taken control, what are you going to do except say, "yessir"....

Yes_Questions's picture

 

 

 

When a hobosexual couple marry, does a larger-cardboard-box-tree fall in the forest?

 

is Thunder Bird on the wine list?

Shocker's picture

You have the bottom 90% that continue to take the brunt of this poor economy.

Layoff / Closing List: http://www.dailyjobcuts.com

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deflator's picture

 I don't like it cuz it's cheap, I like it cuz it's sweet.

thamnosma's picture

Thunderbird is not on MY wine list...

Offthebeach's picture

I've come across some type of waxed heavy cardboard. Real slippery.

I should do field testing of this type and other cardboard. See if young American families, vets, retired can get a couple of months shelter.

We might be able to take regular cardboard and treat it. Say acetone thined epoxy carried into the fibers. Even floor wax, mineral spirit thinned into the material. Then blue tarp.
whatever.

I should get a HUD grant.

aVileRat's picture

Yup. It's going to really suck balls when half the savings assets move beyond the annualized savings rate for US productive classes.

Not threadjacking, but I found this amusing and would love to be a fly on the wall at Air France's boardroom tonight. Hell, given how close friends most of the Air France senior execs are, how did this fly under the radar for so long (sic). Will they under oath testify or state which other corporates/companies run in-house call girl rings ? Does someone want to join me on the over/under on a major NY fashion magazine who used to employ a guy named Terry ? Or perhaps a major US Film company ?

Odd how this was glazed over in the media cycle:

http://www.telegraph.co.uk/news/worldnews/europe/france/10793257/Air-Fra...

 

The_Ungrateful_Yid's picture

Living the american dream is getting the fuck out now...still a dream.

drendebe10's picture

For making this happen, a round of ovation for the corrupt aroogant narcissistic lying sociopath fudge packer in chief living its grand imperial golf life style at tax paying US citizen serfs amd peasantsvexpense.

autofixer's picture

So?  They voted for it. <sarc, sort of>

surf0766's picture

Having a home is a civil right

Grande Tetons's picture

Convincing people to self impose the putting of an Albatros around one's neck was pure magic. 

Flightless. 

Milton Waddams's picture

Long gated communities, personal security detail and armored cars

J Pancreas's picture

Large swaths of Florida and SoCal already look like areas you'd see in Colombia or Brazil. No shantytowns yet because camping bags and tents are still priced alright.

thamnosma's picture

That's absolutely a fact, at least in Southern California.  It ain't all glitter.

buzzsaw99's picture

i have spent the past few years learning to think like a retard and it has paid off big time

 

top picks - brawndo the thirst mutilator, carl's junior brought to you by carl's junior, starbuck's gentlemen's lattes...

oklaboy's picture

PBS's new show, " This Old Shack"

kensuneit's picture

Nice Avatar, Mophead!!

Grande Tetons's picture

Mophead is my favorite poster. Although, I can not remember anything he was written. 

Yes_Questions's picture

 

 

Some of these Avatars are testing to see whether I'm a replicant, or a lesbian..

I swear.

 

TeamDepends's picture

As long as you check the "hobosexual" box you will be able to begin again, in an off-world colony....

seek's picture

One of my ZH pastimes is to run google image search on the avatars and find progressively larger and larger versions of the pictures. There's some nice eyecandy to be found along with the weirdness.

Yes_Questions's picture

 

 

The resurgence of the economy has underscored for us that this country remains a very strong place and that the future remains strong.

 

Somewhere in Michigan, a village is missing its kool-aid junkie.

buzzsaw99's picture

one of these days that guy is going to step away from his three screen trading platform, open the front door of his house, stare out into the desolate wasteland that lies beyond and say wtf?

asa-vet52's picture

This article is so NOT true.   Who is to say what the Amercan dream is anyways?

ebworthen's picture

Well if the American Dream is living in squalor on public assistance the article is not true.

asa-vet52's picture

There are still people living a good life and not buying million dollar mansions. And not living in squalor. The middle class isn't completely dead like some pundits would have you believe.

Vampyroteuthis infernalis's picture

 The middle class isn't completely dead like some pundits would have you believe.

asa, what most people on ZH believe is in the future. Edited for your sake, " The middle class will soon be completely dead like some pundits would not have you believe."

ebworthen's picture

O.K.  The American Dream is dead for me and I no longer believe in America; does that work for you?

intric8's picture

The american dream is part of the debt system created to keep americans in servitude all their lives. People are so pooped after a hard days work that they watch programming that doesnt require any thinking like the kardashians. Do a porn film and get rich and famous, that is the american dream. It certainly isnt our dream of having real freedom, liberty, and seeing the sanctity of our constitution upheld. no siree.

Yes_Questions's picture

 

 

+Trillions!

 

Now where's my fucking CHEESE?!?

 

 

crazzziecanuck's picture

Idiocracy is already here.  Didn't even take 10 years for most of it to materialize.  lol

ebworthen's picture

The FED accomplishing it's dual mandate of equity inflation and generational unemployment.

centerline's picture

Whatever.  Captain Obvious stuff for the ZH crowd.  Post this on Facebook for my wife to read please.

buzzsaw99's picture

You are an unfit mother. Your children will be placed in the custody of Carl's Jr.

Miffed Microbiologist's picture

Front page news in San Diego is how our local Casinos have revitalized our economy and our home prices were leading the nation. I burst out laughing when I read this but wasted time trying to explain it to everyone in the room. Just 10 dull stares.

I guess to connect with people today you must discuss the fascinating tidbits and celebrity gossip found in the Entertainment Section. Life outside of the Matrix can be quite lonely at times.

Miffed;-)

Grande Tetons's picture

Ask them how your ass looks in your new jeans. 

People love to talk about asses and the weather. They are  today's safe zones. 

Miffed Microbiologist's picture

Not when you can still fit your ass in your high school jeans and they must have industrial strength elastic waistbands. In my case, ass is a touchy subject. ;-)

I'm tired of hearing admonishments I shouldn't trail run anymore because I could slip and fall or power yoga is too much effort. The newest thing is petitioning management for an elevator for our building. We only have one flight of stairs.

Miffed;-)

intric8's picture

If real vacant stares out of a group will entertain you further, ask em if they think fractional reserve banking will be the end of us.

change the subject, ask em if your pants emphasizes your bulge quite nicely. seque that into hipster culture. tell em hipsters only read sources that are anti propaganda. Bing! Next thing you know they're all reading zh like they should be

ebworthen's picture

Wow, being next to the Pacific Ocean and having an average temperature of 70 degrees isn't enough anymore?

How sad they have resorted to gambling to prop things; spent some formative years in San Diego and it was a nice place.

Monty Burns's picture

Yes, it was really nice but even as far back as the mid-nineties it was beginning to take on a Mexican look, especially as you went inland. Guess in 20 years time they'll be saying the same thing about the rest of the country....

Dr. Destructo's picture

You handled it better than I did -I gave a blank stare at first, then when my brain processed the shock I wailed in the closet for 30 minutes.

 

Monty Burns's picture

I guess to connect with people today you must discuss the fascinating tidbits and celebrity gossip found in the Entertainment Section.

 

That's the whole point. Dumb them down and distract them with bread and circuses.  Then they'll be as unlikely as cattle to revolt against their fate.