Home Prices Falling Fast, Eroding American Wealth And Threatening Recovery

  • metta

    Posts: 39104

    Dec 10, 2010 8:04 PM GMT
    Home Prices Falling Fast, Eroding American Wealth And Threatening Recovery


    [quote]
    By the end of this year home prices will have dropped $1.7 trillion, or about 7 percent, according to Zillow.com, a real estate data provider. This decline has accelerated: Since August, home prices have fallen 7.9 percent, data from Clear Capital, a Truckee, Calif.-based real estate research firm, show. It is the steepest decline in home values since the height of the financial crisis in 2008, said Clear Capital senior statistician Alex Villacorta.

    Worse, home prices are forecast to drop an additional 10 percent next year, according to a recent report from Fitch Ratings, a major credit ratings agency.
    [/quote]




    http://www.huffingtonpost.com/2010/12/10/home-price-fall_n_794414.html

    icon_confused.gif

    My home has dropped 36% from its peak so far. It is now worth what I paid for it as a new home in 2002. Another possible 10%....eeeekkk....it would be worth less than I paid for it.

    So how is yours doing?
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    Dec 10, 2010 8:18 PM GMT
    Home prices have artificially inflated over the past 5 - 7 years. They're now beginning to normalize back to where they should be. If you bought a home during the peak, then yeah you're gonna lose some money in the short term. But who cares? If you're going to live there for a long time and make it your home, you'll eventually break even as the value naturally increases. The ones that are bitching and moaning are all people thought they could get rich from flipping houses. Now they're stuck with a $200K shack they initially bought for $500K. Actually, those people will probably walk away from their loans.
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    Dec 10, 2010 8:37 PM GMT
    Predictable confirmation bias from SB.
    I can say the same for Republicans who should bear all the blame, if I were to ignore the fact that it takes on average 5 years to rebound to previous employment rates for recessions.

    Weak dollars are good for exports, BTW.
    And tax cuts add more to the deficit.
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    Dec 10, 2010 9:44 PM GMT
    Does it really matter? If your house is dropping by 36%, so is everyone else's. House prices are cyclical, certainly here in the UK and I'm sure it's the same across the pond. House prices tend to dive and then recover every 20 years or so. Negative equity eventually ends up as positive equity. If you're in it to make a fast buck, don't be surprised if you get your fingers burnt.
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    Dec 10, 2010 10:02 PM GMT
    southbeach1500 saidSo, after 2 years of Democrats having complete control of the Federal government, what have we seen in terms of economic progress?

    * Housing prices falling fast

    * Record number of Americans on food stamps

    * Sky high unemployment (and increasing)

    * A very weak dollar

    * Record annual Federal deficits causing a further drag on the economy

    * A ban on offshore oil exploration and drilling, resulting in the destruction of hundreds of thousands of jobs

    * Passage of a healthcare bill that will cost companies billions


    Quite a track record Obama-Pelosi-Reid have, isn't it?


    Let us not forget Bush's Greatest Accomplishments: US Economic Death Spiral, Federal Surplus Erased, Major US City in Ruins, Weapons of Mass Destruction (Bush's "Big Lie") drives US to war.
  • swimbikerun

    Posts: 2835

    Dec 10, 2010 10:16 PM GMT
    http://patrick.net/housing/crash.html

    http://www.nytimes.com/interactive/business/buy-rent-calculator.html?ref=patrick.net





  • Posted by a hidden member.
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    Dec 10, 2010 10:21 PM GMT
    swimbikerun saidhttp://patrick.net/housing/crash.html

    http://www.nytimes.com/interactive/business/buy-rent-calculator.html?ref=patrick.net







    I like that renting/buying tool. thanks!
  • Posted by a hidden member.
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    Dec 10, 2010 10:48 PM GMT
    southbeach1500 saidSo, after 2 years of Democrats having complete control of the Federal government...

    You were singing that lie months ago when I corrected you then (and I think maybe 2 other times now), despite the 2-year anniversary of the last election not being until January, 2011 when the new Congress convenes. But even then it won't have been 2 years in "complete control" for the Democrats.

    To have "complete control" Democrats needed a super-majority of 60 votes in the Senate, to defeat Republican filibusters there. You do remember the Republicans voting against & obstructing everything the Dems proposed, and paralyzing the Senate?

    But let's look at the actual numbers:

    The Senate Dems never had more than 58 seats, and only for 2 months, from July, 2009, when Al Franken from Minnesota finally overcame Republican Norm Coleman's dubious election lawsuits and was sworn in, and the death of Sen. Edward Kennedy in August of that year. Whereupon a Republican was able to win that Massachusetts seat, dropping Dems back to 57 seats.

    So your 2 years turns out to have been 2 months. And still not 60 votes at any time, there being 2 Independents who do caucus with the Dems, but one is the flaky, erratic & unreliable Joseph Lieberman. And even if the Independents voted with the Dems, they still only had 59 votes, not enough to stop the Republicans from blocking legislation.

    But you do insist on this myth, and keep dragging it back out. Sounds good at first reading, makes the Dems sound bad, and I guess that's all that matters to you, not the truth.
  • Posted by a hidden member.
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    Dec 10, 2010 10:48 PM GMT
    Sigh, for me, my dream house is $500000, and I pay 100% in cash. My current rent is $1000.

    It's NEVER better for me other than to rent.icon_razz.gif

    Are we talking about the same house? (i.e. the one you're paying for rent now and the one you're considering to buy)
  • Posted by a hidden member.
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    Dec 10, 2010 11:18 PM GMT
    Well, this housing crisis hit during the Bush administration, OF COURSE.

    It's just too bad that Bush didn't take action and step in and nip it in the bud when it was just starting to become a problem, instead of allowing it to spiral out of control to such epic proportions.

    Yet another example of the total failure of the Bush/Repub advocacy of a completely "hands-off" free market.
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    Dec 10, 2010 11:22 PM GMT
    southbeach1500 said
    catfish5 saidLet us not forget Bush's Greatest Accomplishments: US Economic Death Spiral


    Democrat Congress.




    catfish5 saidFederal Surplus Erased


    Idiotic Republican Congress acting like Democrats by increasing spending and the size of government.



    catfish5 saidMajor US City in Ruins


    ?????




    catfish5 saidWeapons of Mass Destruction (Bush's "Big Lie") drives US to war.


    .... in Iraq. Still not convinced it was a lie...

    But why are you still talking about Bush? Shouldn't you be focusing on how to help the people currently in power are not delivering on their promises to you?


    Let us not forget history or we will be doomed to repeat it.
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    Dec 10, 2010 11:27 PM GMT
    southbeach1500 said
    catfish5 said
    Let us not forget history or we will be doomed to repeat it.


    True.

    History is littered with the carcasses of failed societies where government tried to centralize power, abscond with the wealth of their citizens via confiscatory taxes and control their societies.

    It does seem that we've seen yet another attempt at this failed idealogy over the past 2 years.


    Republicans continue to advocate more trickle down economics that destroyed this country in the first place. When will they learn that the definition of stupidity is repeating something that doesn't work over and over and over again expecting a different result.
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    Dec 10, 2010 11:34 PM GMT
    catfish5 said

    Let us not forget history or we will be doomed to repeat it.




    Amen!

    History shows that every recession for the past 30 years has hit with a REPUBLICAN in the White House.

    History shows that the Republicans have run up massive yearly budget deficits year after year after year for the past 30 years, and have been saying that "deficits don't matter" for the past 30 years, while they've ballooned the National Debt.

    History shows that the stock market has performed much better with a Democrat in the White House that it has with a Republican in the White House.

    GREAT reasons why we must all vote for Democratic presidential nominees to make sure a Republican never occupies the White House again, until and unless the Republican party abandons the failed trickle down economic policy that they've implemented for the last 30 years.
    They must not be allowed to do any more damage to our economy than they already have.

  • mybud

    Posts: 11829

    Dec 10, 2010 11:35 PM GMT
    southbeach1500 saidSo, after 2 years of Democrats having complete control of the Federal government, what have we seen in terms of economic progress?

    * Housing prices falling fast

    * Record number of Americans on food stamps

    * Sky high unemployment (and increasing)

    * A very weak dollar

    * Record annual Federal deficits causing a further drag on the economy

    * A ban on offshore oil exploration and drilling, resulting in the destruction of hundreds of thousands of jobs

    * Passage of a healthcare bill that will cost companies billions


    Quite a track record Obama-Pelosi-Reid have, isn't it?


    You forgot one....Millionaires and Billionaries want a tax cut extension for 2 years...
  • Vaughn

    Posts: 1880

    Dec 10, 2010 11:40 PM GMT
    southbeach1500 said
    catfish5 saidLet us not forget Bush's Greatest Accomplishments: US Economic Death Spiral


    Democrat Congress.




    catfish5 saidFederal Surplus Erased


    Idiotic Republican Congress acting like Democrats by increasing spending and the size of government.



    catfish5 saidMajor US City in Ruins


    ?????




    catfish5 saidWeapons of Mass Destruction (Bush's "Big Lie") drives US to war.


    .... in Iraq. Still not convinced it was a lie...

    But why are you still talking about Bush? Shouldn't you be focusing on how to help the people currently in power are not delivering on their promises to you?


    i. Uh................................... Serious?
    ii. We still trash Bush because he epic failed.
    iii.It would help if the Republicans would stop filibustering.
  • Posted by a hidden member.
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    Dec 11, 2010 1:35 AM GMT
    southbeach1500 saidSo, after 2 years of Democrats having complete control of the Federal government, what have we seen in terms of economic progress?

    * Housing prices falling fast

    * Record number of Americans on food stamps

    * Sky high unemployment (and increasing)

    * A very weak dollar

    * Record annual Federal deficits causing a further drag on the economy

    * A ban on offshore oil exploration and drilling, resulting in the destruction of hundreds of thousands of jobs

    * Passage of a healthcare bill that will cost companies billions


    Quite a track record Obama-Pelosi-Reid have, isn't it?


    All the control in the world doesn't work against the power of the filibuster. Everything you've listed has actually been because of GOP influence and approval, including the healthcare bill. It's simple, really.
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    Dec 11, 2010 1:38 AM GMT
    mybud said
    southbeach1500 saidSo, after 2 years of Democrats having complete control of the Federal government, what have we seen in terms of economic progress?

    * Housing prices falling fast

    * Record number of Americans on food stamps

    * Sky high unemployment (and increasing)

    * A very weak dollar

    * Record annual Federal deficits causing a further drag on the economy

    * A ban on offshore oil exploration and drilling, resulting in the destruction of hundreds of thousands of jobs

    * Passage of a healthcare bill that will cost companies billions


    Quite a track record Obama-Pelosi-Reid have, isn't it?


    You forgot one....Millionaires and Billionaries want a tax cut extension for 2 years...


    Yes, and if the cuts are extended for all, and the economy improves, it will have nothing to do with the unemployment $ extension, or the additional $ afforded to the middle class (though this will only be temporary. In reality, the poor and middle class will end up paying more; the wealthy will pay no more). What the GOP and Wall Street will do is claim that the economy has improved because of the extension of cuts to the top 2%, which would warrant a permanent extension for the top 2% in 2012, but not the rest of us. We'll get stuck with footing the bill ... again.
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    Dec 11, 2010 2:23 AM GMT
    With homes so cheap in America, and the Aussie dollar being as healthy as it is, thats why one is looking at snapping up properties now, for investment. So it's all good for me.
  • DCEric

    Posts: 3713

    Dec 11, 2010 2:25 AM GMT
    I bought at the bottom of the market, and have already gotten a 5% increase in the value.
  • Posted by a hidden member.
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    Dec 11, 2010 2:27 AM GMT
    southbeach1500 saidSo, after 2 years of Democrats having complete control of the Federal government, what have we seen in terms of economic progress?

    * Housing prices falling fast

    * Record number of Americans on food stamps

    * Sky high unemployment (and increasing)

    * A very weak dollar

    * Record annual Federal deficits causing a further drag on the economy

    * A ban on offshore oil exploration and drilling, resulting in the destruction of hundreds of thousands of jobs

    * Passage of a healthcare bill that will cost companies billions


    Quite a track record Obama-Pelosi-Reid have, isn't it?


    It's about time the democrats stop passing the buck, and puting all the blame on the Republicans, they should be damaning what Obama is doing about it?

    What has he done about it?

    lets not forget when the Republicans take over the White House, there will be a mess they will have to clean up too, and the Democrats will still be blaming them for DADT, and demanding they do something too.
  • DCEric

    Posts: 3713

    Dec 11, 2010 2:28 AM GMT
    southbeach1500 said* Passage of a healthcare bill that will cost companies billions


    With 3 of my family members in the healthcare industry, I can proudly say: What the hell are you talking about?
  • turtleneckjoc...

    Posts: 4685

    Dec 11, 2010 3:27 AM GMT
    southbeach1500 saidSo, after 2 years of Democrats having complete control of the Federal government, what have we seen in terms of economic progress?

    * Housing prices falling fast

    * Record number of Americans on food stamps

    * Sky high unemployment (and increasing)

    * A very weak dollar

    * Record annual Federal deficits causing a further drag on the economy

    * A ban on offshore oil exploration and drilling, resulting in the destruction of hundreds of thousands of jobs

    * Passage of a healthcare bill that will cost companies billions


    Quite a track record Obama-Pelosi-Reid have, isn't it?


    Again, you are a complete idiot and have no memory whatsoever.

    First of all, your little never-ending rant here has little to do with the topic. As always you finger-point but refuse to acknowledge the real problem. Yeah, it's YOUR Republican administrations that caused all of the items you have ticked off here.

    Two years cannot erase the damage caused in the eight of Bush-Cheney. You refuse to understand that, therefore, you apparently like misery....just like the miserable pile of ignorant crap you are....

    Now, back to topic:

    Home values in Orlando have dropped tremendously since the beginning of the (Bush created) recession. At the height of the craziness, condos in my immediate area went for an average of 365K. Now they are going for 45K and the thought among the real estate professionals I know, they will drop another 10K. It's a buyers market in my part of town, however, you need to have all cash as no one is lending on condos.

    One problem we had here, similar to other parts of the country, is where mortgage applicants that barely had brain waves could qualify for a 250K home, and we saw homes going for that amount in middle to lower middle class neighborhoods. Now with all the foreclosures here, those areas are now "hoods," with crime starting to escalate.

    Even in the Disney-created area of Celebration, there are empty homes with weeds in the yards and properties in serious need of work. That area used to be so pristine and perfect. It no longer is.
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    Dec 11, 2010 3:49 AM GMT
    southbeach1500 said
    DCEric said
    southbeach1500 said* Passage of a healthcare bill that will cost companies billions


    With 3 of my family members in the healthcare industry, I can proudly say: What the hell are you talking about?



    This:

    ObamaCare Day One

    Companies are already warning about higher health-care costs.

    Caterpillar said it would cost the company at least $100 million more in the first year alone.

    In an email titled "President Obama Signs Health Care Legislation" sent to all employees Tuesday night, the telecom giant warned that "we expect that Verizon's costs will increase in the short term." While executive vice president for human resources Marc Reed wrote that "it is difficult at this point to gauge the precise impact of this legislation,"

    Mr. Reed specifically cited a change in the tax treatment of retiree health benefits. When Congress created the Medicare prescription drug benefit in 2003, it included a modest tax subsidy to encourage employers to keep drug plans for retirees, rather than dumping them on the government. The Employee Benefit Research Institute says this exclusion—equal to 28% of the cost of a drug plan—will run taxpayers $665 per person next year, while the same Medicare coverage would cost $1,209.

    In a $5.4 billion revenue grab, Democrats decided that this $665 fillip should be subject to the ordinary corporate income tax of 35%. Most consulting firms and independent analysts say the higher costs will induce some companies to drop drug coverage, which could affect about five million retirees and 3,500 businesses. Verizon and other large corporations warned about this outcome.


    http://online.wsj.com/article/SB10001424052748703312504575141642402986422.html


    Health insurance premiums have been averaging a 15-25% increase annually for the last several years, which has nothing to do with HCR, and everything to do with (say it together) "Greed!"
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    Dec 11, 2010 4:02 AM GMT
    It just cracks me up that all you older guys are still bickering over who is to blame for everything. For some of you guys the world's problems are from Bush and Reagan and for others the worlds problems all stem from from Obama and Clinton. Has anyone else noticed the general trend on RJ (minus a few exceptions) that us younger guys seem to not participate in these posts with the extant of ranting that you older guys do? I think us younger cowed seems to have realized that the problem is with the ENTIRE GOVERNMENT, not one party or the other. Your endless bickering on RJ is no different than what is going on in Washington DC on a daily basis - backwards thinking people from both extremes (and everyone in between) who simply have not grown up enough to know that you can't please everyone (YOURSELF AND PERSONAL AGENDA INCLUDED) and compromises MUST be made my EVERYONE all the time in order for a government for the people and by the people to work.

    Anyhow, just thought I'd put in my two cents. Now I leave ya all to go back to your endless bickering, finger pointing, and blaming, as the representatives who you have put into government have so eagerly demonstrated how to do. Meanwhile, the rest of us quiet guys try to figure out constructive compromises, which might not always work, but at least we are trying and open to suggestions from everyone.
  • turtleneckjoc...

    Posts: 4685

    Dec 11, 2010 4:14 AM GMT
    thomaswalto saidIt just cracks me up that all you older guys are still bickering over who is to blame for everything. For some of you guys the world's problems are from Bush and Reagan and for others the worlds problems all stem from from Obama and Clinton. Has anyone else noticed the general trend on RJ (minus a few exceptions) that us younger guys seem to not participate in these posts with the extant of ranting that you older guys do? I think us younger cowed seems to have realized that the problem is with the ENTIRE GOVERNMENT, not one party or the other. Your endless bickering on RJ is no different than what is going on in Washington DC on a daily basis - backwards thinking people from both extremes (and everyone in between) who simply have not grown up enough to know that you can't please everyone (YOURSELF AND PERSONAL AGENDA INCLUDED) and compromises MUST be made my EVERYONE all the time in order for a government for the people and by the people to work.

    Anyhow, just thought I'd put in my two cents. Now I leave ya all to go back to your endless bickering, finger pointing, and blaming, as the representatives who you have put into government have so eagerly demonstrated how to do. Meanwhile, the rest of us quiet guys try to figure out constructive compromises, which might not always work, but at least we are trying and open to suggestions from everyone.


    Thomas, thank you for saying this. You are absolutely correct.

    In essence, compromise is going to have to come from both sides. The Republicans are going to have to give up some of their pet ideas and us liberal Dems will have to give up a few of ours as well.

    Thomas, please post your thoughts more often in the forums. We need guys like you.