Politicalmonkey2010

The Truth Shall Set You Free…It might piss you off first, but it will set you free.

The Sky Is Falling, House Prices Are Falling!

Posted by politicalmonkey2010 on August 25, 2010

The Sky is Falling! House Prices are Falling!

It often helps to put a bit of reality into a situation…the chants of the sky is falling and it is Obama’s fault started yesterday.  Stats are wonderful, but like everything else put it in perspective…

  • Real estate prices have further – perhaps much further – to fall.

Inventory overhang still significant. The following may be helpful:

  • Median wages fell 0.3% between 2000-07; unable to support higher home values; prices are now reverting to the long-term mean.
  • 3 reasons to buy a home. In order of importance: 1) roof over your head, 2) tax breaks 3) possibility of price gains. 1 & 2 are guaranteed
  • The extraordinary gains in real estate between ‘01-’07 have only been seen once before – right after WWII, another unusual period.
  • Data going back to the 19th century: real estate appreciates about 1.5% beyond inflation. Yet people think the ’01-’07 period was normal.

Let me give credit where credit is due..this comes from twitter http://twitter.com/westwingreport  – excellent source, verified, well informed, follow!

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One Response to “The Sky Is Falling, House Prices Are Falling!”

  1. bailiff said

    Pretty very good post. I just stumbled upon your blog and wanted to say that I have incredibly enjoyed reading your blog posts. Any way I’ll be subscribing for the feed and I hope you post again soon.

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