House prices are falling again—and the decline is accelerating.
Today’s big housing numbers comes from the Case-Shiller home price indexes. The indexes, which measure how prices have changed over the previous three months, show prices falling in every major metropolitan area (except, weirdly, Detroit). The 20-city average declined 3.3 percent from a year ago, and 1.1 percent from the previous three-month average.
This is the seventh successive month of widespread price declines.
The housing recovery began to stall last spring, after the government’s home-buyer tax credit expired. The three-month moving average of the Case-Shiller 20-city index showed that gains in home pricing slowing to a crawl in early summer and actually reversing in July and August. By September, it was clear that home prices were going into a serious decline.
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It's just a matter of time before everything collapses.
ReplyDeleteI also agree with you.
DeleteRent in Chiang Mai
There was a massive overproduction of accumulated past profits reinvested as capital, but unable in the competition to extract enough profit from sales of commodities , houses , cars ,TVs etc. even after expending credit to the max, that is beyond peoples ability to even make their interest payments to keep thePonzi alive.
ReplyDeleteIn turn this creates an overproduction of goods unable to be sold as the credit supply is cut. The market dies ,housing bubbles implode as once seemingly strong asset values continue to fall.
The middle class had most of its savings invested in housing property ,but ut here
value turns out to be fictional value based only future expectations of a rising price.
Price is the money form of value.
Printing paper for the creation of more debt in the form of national debt cannot solve that problem of capital unable to ‘grow” just create a bigger national debt to the Treasury bill bondholders.
America and Americans are not so much running out of money as such but running out of credit.
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