Tuesday, February 24, 2009
home price declines still accelerating
These are the worst year-over-year price declines for the Composite indices since the housing bubble burst, although only slightly worse (on a year-over-year basis) than November.
i wouldn't be so optimistic as henry blodget -- it seems a touch irrational to call the highwatermark based on what we see here.
still some poor deluded folks talk about putting some kind of floor under housing. there's still a deep denial among many of what exactly has happened. but the hard truth is that, short of utterly debauching the currency and rendering tomorrow's dollar worth today's dime, there is no relief for nominal home prices anywhere to be found. home prices will stop falling eventually; but it won't be very soon. see robert shiller for more. and indeed, in real terms, even dollar devaluation can not help -- prices are reverting now with extreme prejudice to their longstanding relations to incomes and rents with a high probability of significantly overshooting into real cheapness.