Home Prices Fall Again in April
Home Prices
Standard & Poor’s Case-Shiller index of 20 major cities fell 18.1 percent in April. The good news was that the April home prices marked the third straight month the decline was not a record. Eight of the 20 metro areas tracked in this report showed price gains from March.
Robert Shiller said:
“My guess would be that home prices are going to level off — they’re not going to keep falling. I am not optimistic that we’re going to see any sharp rebound.â€
One should note that the Case-Shiller 20-city index is off almost 33 percent from its peak in the second quarter of 2006. This equates to home values around 2003-levels.
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Those discussing the large drop in home prices that need to happen are failing to mention that the nominal price will not fall that far because Bernake is inflating the market; real prices will fall 30%+, however.
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Home prices will fall up to 50%, the Fed can’t keep up with the jingle mail folks, cutting rates to 0 = 33% inflation. Poor, poor timing. Jimmy Rogers recently called on Blind Ben to resign, a total screw up.
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This was a good post; I am not sure if I have anything positive to say. First off, growth in home prices over the past few years was unnatural too. There were things in the mix that caused the free market system not to work, or maybe better said, “balloon.” There was government trying to create more tax revenue by relaxing monetary guidelines, the fed was keeping interest rates low on an artificial basis and then there were the promoters- Realtors, Mortgage companies, builders and the media to name a few, who pushed the notion that you could get a home for free. The risk reward portion of the equation was taken out. Now we face an industry that is broken and may not recover for quite awhile.
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