When we started in 2006, I was often told that Housing Doom was overly pessimistic. My usual reply was “Who’d be interested in a site called “Housing Moderation”? Now in 2011 apparently even CNBC shares our pessimism:
In the past few years, we’ve all been careful to choose our words carefully, not calling it a recession until it fit the technical definition and avoiding any inappropriate use of the “D” word — Depression.
Things were bad but the broader economy never reached Depression territory. The housing market, on the other hand, just crossed that threshold.
Home values have fallen 26 percent since their peak in June 2006, worse than the 25.9-percent decline seen during the Depression years between 1928 and 1933, Zillow reported.
November marked the 53rd consecutive month (4 ½ years) that home values have fallen.
What’s worse, it’s not over yet: Home values are expected to continue to slide as inventories pile up, and likely won’t recover until the job market improves.
Mish's Global Economic Analysis
Bubble Meter
UK House Bubble
Northern Virginia Housing Bubble Fallout
Ohio Fraudclosure
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It’s happening all over the world… and who do we have to thank? Greedy banks – thanks for the post and we’ll all keep our fingers crossed!
… and we at Doom will be keeping our fingers crossed for QLD over the next weeks and months. Stay safe!
It is truly unfortunate how far the market has fallen. Obviously, the banks should never have been allowed to act in such unethical manners; however, now we have to play the waiting game until the economy (and housing market) recovers–which may be a long while at this rate.
most areas the house prices are way too high. Our government has to stop supporting the house market or prop the house price. Let the free market take it course: it’s call supply and demand. If we look at the rent compare with house price, it way off course. We are too much in debts and unemployment is still very high. The cost of livings have gone up faster than our paychecks. I rather rent than own.
Robert-
I concur. I keep reading that “housing has never been so affordable”, but I haven’t really found the bargains to back it up.
My guess is there about 2 or 3 years for the option arms to reset and there will be more houses foreclosures. Already there ton of houses are underwater. Banks have alot of hidden shadow inventories which they release some into the market without effective much of price. Obama Modification is to bailout the financial industries delaying the recovering of the economic. I got a supervisor who made good money and purchase a house in late 2006, he got modification. He already adding water sprinklers, new windows, new dishwasher, new refrigators, paint the place and did some landscaping. The FHA gave his 2% interest…etc. It is taxpayers’money was total wasted. People are starting join the bandwagons of lower their mortgages with Obama Modification even thought they can afford their mortgages. As long as the government interventions supporting the house market, I will continue to wait it out unless I see an opportunities.
.I would rather invest in something that has been down for 10 years than one that has been booming for the past decade. Things look absolutely bleak in the sector and nobody is suggesting that investors buy any stocks with exposure to the real estate market..But I think avoiding the real estate altogether is a mistake.