Second home sales hidden backbone of real estate industry

There so many lies out there that are stirred around and retold by the corporate controlled media and the puppet politicians that it can be hard to keep track of them. But once you take the red pill, it becomes easier to recognize the subterfuge and intentional attempts to manipulate information in an Orwellian manner that turns our language upside down. I use the term “manipulate” information in this instance for a reason. There are outright lies floated, and of course spin is to be expected. But there is also the intentional omission of information.

When the average American reads about real estate and home sales in the news, he or she is probably thinking that the numbers that they see are pursuant to ordinary people just like them. When you consider the American dream of home ownership, it usually entails a young person or couple embarking on a career path, saving some money for a down payment, and then buying a home in the community where they live and work. We all know that this simple formula has been turned on its head recently, and much can be written on the topic. But today we want to point out the fact that home sales statistics have always been heavily impacted by a factor that everyday folks don’t stop to consider: second homes sales.

Since it is early in the year, 2009 statistics are not available yet for many industries, so I am going to have to use 2008 numbers. In 2008, 30% of homes that were sold were purchased by people who already owned at least one house. In 2005, that number was 40%. So when you read statistics about home sales, bear in mind that about a third of them, at minimum, are being bought by the elite who can afford to own multiple homes. The numbers do not accurately reflect the segment of the market that most of us are interested in–We The People who are looking to buy our only home.

We are anxious to see last year’s numbers, and it will be interesting to see what percentage of homes that were sold in 2009 were purchased by investors and those who are wealthy enough to purchase vacation homes.