Is this Hope or Change? — “You might not know it from reading the news, but the nation’s housing prices are in free fall again.”
Our neighborhood has been undergoing a surprising growth spurt since we moved in almost a year ago. We’ve watched 11 new homes built just on our block since moving in. However, over the last couple of months I’ve noticed fewer and fewer SOLD signs in front of those empty spec homes.
For the many Americans who have (or had) most of their wealth tied up in their homes, the consequences of this will be profound. The effect on nationwide consumption will inevitably be severe. In fact, there are some not inconceivable scenarios in which the housing market could just take the economy down with it again.
Despite the fact that the nation is officially in a period of economic recovery, the latest data show that home prices are diving. One recent survey pegged the decline at 0.7 percent per month; another found prices down 5.8 percent between August and October.
One analysis found home values will likely drop more than $1.7 trillion this year, on top of the $1.05 trillion drop in 2009. That would bring the loss in wealth to $9 trillion since the June 2006 market peak, when the housing stock was valued at about $24 trillion.
And many market analysts expect prices to drop 10 percent or more in 2011.
You can thank Bahwny Fwanks and Chrissy Dodds directly.
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Stunningly brilliant of you to take your local real estate market and extrapolate it to the entire country. I guess we can now add “economist” to your multitude of talents. It’s just my opinion, but I think the dropoff in homes sales in Spicewood probably has more to do with its growing reputation as a haven for meth labs.
I think the scenario of another housing, and economic, crash is mostly wishful thinking on your part, driven by your deeply irrational hatred of Obama. If you really believe this scenario, here’s what you and your sheeple should do: mortgage your house, take the cash, and short the homebuilder stocks. Bigtime. If housing prices are dropping, then so will their profits, no? Better yet, buy puts on homebuilder stocks, and you’ll be a wealthy man. If that scenario plays out.
I don’t think it will – but if you do, and you have more sack than mouth, you’d do what I suggest and put your money where your mouth is.
But you won’t.
Despite the fact that the nation is officially in a period of economic recovery, the latest data show that home prices are diving. One recent survey pegged the decline at 0.7 percent per month; another found prices down 5.8 percent between August and October.
This is reflective of the national market, no?
here’s what you and your sheeple should do: mortgage your house, take the cash, and short the homebuilder stocks
Here’s what you should do: go fuck yourself.
But he won’t.
Wishful thinking? What the hell are you rambling about?
It’s nothing but the facts. Which of course are a Liberal’s worst dreams.
My local market (Austin) is fairing better than most in the nation. But the fact remains that home values did drop over $1.05t last year, and are expected to drop an additional $1.7t this year.
There’s just no way to spin that or sugar coat it into something it’s not.
From a Kansan’s point of view. I live in a fairly wealthy county in Kansas. Since 2008 my home value has dropped approximately 11%. My house is 4 years old. Since I had it built I have added a large patio and in-ground pool. There are no foreclosures in my immediate neighborhood. New home construction has definitely dried up. There are not very many houses for sale but resale prices are lower. The unemployment rate is 6.8% in the State, lower in my county.
I conclude that the biggest portion of loss in home values here is as a result of the fallout from the national problem and the resultant fear by people and banks that the problem will spread here too. Our county assessors have concluded we have hit bottom in the county, but I’m not so sure.