AMERICA'S HOUSE PRICES ARE FALLING EVEN FASTER THAN DURING THE GREAT DEPRESSION
ECONOMIST As house prices in
UNDERNEWS
Undernews is the online report of the Progressive Review, edited by Sam Smith, who has covered Washington under nine presidents and edited alternative journals since 1964. The Review is an online journal and archive of alternative news. It has been on the web since 1995. See main page for full contents
Tuesday, June 3, 2008
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5 Comments:
"And things are even worse than they look."
Yes, of course. Above all else we must hope for housing prices to stabilize at a level beyond which people can actually afford them. Then things will be good. People funneling every penny into mortgage payments so they can't save for retirement or have any disposable income left over for the pleasures of life and the health of the rest of the economy. This will be heralded as good news.
I'm sick of the wrong-headed perspective on falling housing prices.
EXTREMELY WELL-PUT, 740. THANK YOU!
The sag in prices, if it exists at all, is only temporary. Real estate, real property, is a global commodity and will therefore retain its relative value to other global commodities. As the dollar continues to shrink in value, eventually housing will reflect the short-fall in buying power and prices will then soar through the roof, as it were. The trick will be holding onto the land long enough to benefit from the inevitable correction. Seldom mentioned during discussions that evoke the Great Depression is the fact that stocks generally recovered their full value within three or four years of the great crash of '29.
3:24 sounds like all the flacks for the entire real estate/mortgage industry have sounded once a week since the problem began: Keep buying, it's about to turn around...keep buying, it's about to turn around...keep buying, it's about to turn around...
You fail to fully comprehend.
It is not about keep buying.
It is about the deliberate devaluation of the dollar and its international consequences. Things like metals, food, and land tend to maintain consistent value over time in terms of relative buying power. Under the new pressures of the 'global economy', local devaluations of a commodity represent temporary aberrations due for eventual correction. As there is no international let up in the pursuit of property, it is more than likely domestic prices will soon reflect values internationally. That is to say, the average person will no longer be able to afford land and the prospects of a surviving middle class are nil. Therefore, if one is fortunate enough to presently own some property they ought to be making every sacrifice possible to maintain it if they hope to retain any semblance of financial security. Dollars in the bank are going to be worthless---they nearly are now.
It is also worth noting that farm prices have not shown downward trends and are very much on the rise.
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