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Housing Prices Fall Again

Written by Gary North on February 29, 2012

The Case-Shiller housing price index fell 1% in December. That was down 4% for 2011. This index is an average of three months.

The last time the index was this low was in 2003. That means that nine years of investment returns are zero. But of course, the returns are negative. The houses are older. Repair costs are rising. Property taxes continue.

There is no sign of a reversal. Professor Shiller and Professor case tried to find a few positives, but there were not many. Every month, the news is bad, and every month they try to see something positive.

Shiller says: “We might be on the verge of a recovery, but we might not.” We still have downward momentum, he says.

This is noise, not analysis. Why bother to say anything?

The recovery, weak as it is, has not reversed the decline.

In 18 of the 20 cities, prices declined. Miami and Phoenix stabilized. But these two cities have been among the hardest hit.

There is news that more homes have sold. That’s because prices keep falling.

Other news:

Durable orders drop 4%; demand for aircraft tumbles almost 20% Orders for long-lasting U.S. goods fell by the most in three years in January, as demand for aircraft and a broad array of products decline.

The recovery is pathetic. This is four years after the decline began.

Nothing is working. And the federal deficit grows by $100 billion a month.

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