According to Case Shiller, nationwide house prices have fallen 18% from their peak in the first quarter of 2006. Mark Zandi, chief economist at Moody's Economy.com, said house prices are expected to fall an additional 10% to 15% between now and mid-2009.
As more homeowners end up owing more on homes than they are currently worth, they are likely to walk away from their mortgages, causing further pressure on the downward spiral in housing prices. Prior posts on falling home prices:
San Diego Real Estate Market … What Did You Expect?
Real Estate Record Home Price Declines
#1 EZ Fix to The U.S. Housing Market
San Diego Home Sales Up … San Diego Home Median Price Drops
Government Bail-Out – Risk & Reward
New-home construction in August Hit 17 Year Low
Southern California Home Prices Drop 34% in August
#1 Key To Purchasing Real Estate in the San Diego Market
Yale Professor … House Price Decline Could Be Worse than Great Depression
downtown San Diego real estate
So how bad is it? I hear all these ramblings, fancy financial terms and so on. But what does it all really mean? Does the US collapse? Do we see soup lines and down trodden people like the experience was during the Great Depression? Seems to me the US financial catastrophe is pretty simple. Our government and the citizens of the US have consistently spent more than they take in. At some point the debt becomes so great we are unable to pay it back, or manage it. When we are no longer able to pay our debts what happens? Do we surrender assets, land and military hardware to the foreign nationals we’ve been burrowing money from over the last two decades? Maybe a fire sale of America? The whole system is a sham and we only have ourselves and those shysters in Wall Street and the Scum of Washington DC to blame..Sorry to say but, neither McCain, Clinton nor Obama will be able to save us from this SNAFU. The concept of uncontrolled spending and deficit through credit has finally caught up with us. This decade is perhaps a time for reckoning in which our short sighted ways and embrace of Wall Street’s psychopathic free market capitalism garnered by greed and unequaled corruption will finally get the best of us..
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Shakespeare had it wrong… We should have killed all the economists….
Plastic Surgeon
And to top it all off—soon to be ex-President George W Bush will be leaving U.S. with a $10trillion dollar debt to be paid with declining home prices. Give me back Clinton’s 90s balanced budget economy any time compared to the nuts currently running Washington.
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