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Home Prices Fall Again, Still, As Usual

Written by Gary North on March 29, 2012

The Case-Shiller index reveals falling home prices across the nation. The move is relentless.

The happy-face press releases by the ever-optimistic National Association of Realtors appear mid-month.The news was bad for February, but the NAR’s economist tried to make things look better.

Lawrence Yun, NAR chief economist, said underlying factors are much better compared to one year ago. “The market is trending up unevenly, with record high consumer buying power and sustained job gains giving buyers the confidence they need to get into the market,” he said. “Although relatively unusual, there will be rising demand for both rental space and homeownership this year. The great suppression in household formation during the past four years was unsustainable, and a pent-up demand could burst forth from the improving economy.”

Then the Case-Shiller index numbers are released toward the end of the month. Reality intervenes.

The Case-Shiller index is a three-month average.

The media want to persuade people that the recovery is in full swing. But then comes the Case-Shiller index. Here, reality cannot be spun easily. The news reports tell us that the housing market will revive when the unemployment rate falls. But the unemployment rate stays high.

So, the good news on the housing front is for buyers. Investors can still find desperate sellers who will sell at steep discounts.

The owners are still suffering losses of their capital. This makes them feel poorer.

To see how far down prices went in your city, click here. Prices rose in two devastated cities, Phoenix and Miami, and in Washington D.C. The other 17 were down.

Continue Reading on www.marketwatch.com

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2 thoughts on “Home Prices Fall Again, Still, As Usual

  1. I tried to finance my home last year, a la Obama's hopeful suggestion. It cost me $2,000 to get everything in order. Then my appaisal, which had cost $400, came back 10,000 dollars below its loan value. Bank: No way.

    The government flooded the real estate market with phony buyers who couldn't afford homes, but who had government-backed loans making them "qualified buyers." After the real estate companies cleaned up, everybody got their billion of dollars in commissions, and after the elections, in which the Democrats got all the votes, then the foreclosures started for all the low income people whom the government had helped into homes.

    Just another case of theft-by-Pelosi. Vernon's Book of Criminal Statutes needs to be supplied with a one-word term for this crime. It is a doozy.

  2. As long as Obama is in office, people will continue to lose equity in their homes.