Home prices were down nearly 20% at the end of last year, according to two new reports. But there is plenty of further room to fall, say economists who forecast where the housing market is headed. The median sales price of existing homes fell to $175,400 in December, down 15.3% from a year earlier, according to the National Association of Realtors (NAR). And the S&P/Case-Shiller index shows that home prices in 20 cities fell 18.2% in November compared with the year before. Both measures make houses about as expensive as they were in 2004.
And we're probably not done yet. "Our outlook is that home prices will continue to fall, bottoming by the end of this year, but it won't be until the end of 2010, maybe even 2011, that we'll see steady price gains," says Celia Chen, an economist at Moody's Economy.com. Chen and her colleagues predict that home prices, as measured by Case-Shiller, are due to drop some 30% from their early-2006 peak. We're only about two-thirds of the way there.
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They are still way, way too high in a lot of areas.
ReplyDeleteA fake bubble propped up by the Fed. When interest rates start soaring goodbye equity.
Bread, milk, and gas will soar. Homes won't. Home pricing is tied to jobs and financing.
No jobs + 17% interest rate means housing is going to take huge hit. I see $440k McMansions being at $75k in three years. If that.
Excellent newer Celente video. Don't believe I saw it here yet.
ReplyDeletehttp://www.youtube.com/watch?v=rEZXLwAAur0
The Abyss
ReplyDeletehttp://pencildicksvstheworld.blogspot.com/2010/01/financial-abyss.html
The only thing I didn't like about that Celente video is the part about him saying there are terrorists lurking and they could be anyone.
ReplyDeleteThat is tripe. The kind of propaganda the government loves. Gerald knows that terror is government sponsored and plotted. Not sure why he went off on that tangent.
Just shows no one is an expert on all matters.
Very old news. Your Time story is from Jan. 2009 !! not 2010.
ReplyDelete