A Healing Nation

Sept. 13, 2012
The economy is on its way to restoring equity to homeowners.

Rising home prices have moved 1.3 million homes from being upside down on their mortgages to a position of equity for their owners.  600,000 of these occurred last month. There are still 10.8 million homes underwater, but the healing in home equity is certainly underway. While 2014 will likely cause a setback in the positive momentum and it may take a few years before the healing is complete, we are definitely on our way to restoring equity to homeowners. This is obviously good news.

The trend also answers a question I was asked at a Vistage All-City meeting today. The question was a recent article that purported that the current 20-somethings were not going to be interested in home ownership, and therefore future general economic recoveries would not involve the housing industry. My answer was that the current 20-somethings would see home prices going up and therefore and want to participate in equity creation. They would also see rising rental rates and realize they can fix their living costs while creating equity.  I believe today’s 20-somethings will do the smart thing and start buying homes, helping to fuel the US economy after the 2014 recession.  

About the Author

Alan Beaulieu Blog | President

One of the country’s most informed economists, Alan Beaulieu is a principal of the ITR Economics where he serves as President. ITR predicts future economic trends with 94.7% accuracy rate and 60 years of correct calls. In his keynotes, Alan delivers clear, comprehensive action plans and tools for capitalizing on business cycle fluctuations and outperforming your competition--whether the economy is moving up, down, or in a recession.

Since 1990, he has been consulting with companies throughout the US, Europe, and Asia on how to forecast, plan, and increase their profits based on business cycle trend analysis. Alan is also the Senior Economic Advisor to NAW, Contributing Editor for INDUSTRYWEEK, and the Chief Economist for HARDI.

Alan is co-author, along with his brother Brian, of the book MAKE YOUR MOVE, and has written numerous articles on economic analysis. He makes up to 150 appearances each year, and his keynotes and seminars have helped thousands of business owners and executives capitalize on emerging trends. 

Prior to joining ITR Economics, Alan was a principal in a steel fabrication company and also in a software development company.

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