America's house prices are falling even faster than during the Great Depression
From Economist.com
AS HOUSE prices in America continue their rapid descent, market-watchers are having to cast back ever further for gloomy comparisons. The latest S&P/Case-Shiller national house-price index, published this week, showed a slump of 14.1% in the year to the first quarter, the worst since the index began 20 years ago.
Now Robert Shiller, an economist at Yale University and co-inventor of the index, has compiled a version that stretches back over a century. This shows that the latest fall in nominal prices is already much bigger than the 10.5% drop in 1932, the worst point of the Depression. And things are even worse than they look. In the deflationary 1930s house prices declined less in real terms. Today inflation is running at a brisk pace, so property prices have fallen by a staggering 18% in real terms over the past year.
Wednesday, June 4, 2008
House prices: Through the floor ...Time to Buy yet?
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Entrepreneur, former Fortune 500 senior executive, semi-retired at the age of 39 after founding and growing several businesses in High Technology, Management Consulting and Manufacturing.
Seems like we are getting close... but I'd rather wait a bit more until I'm sure the economy has tanked and reached bottom.
ReplyDeletePrices seem to have dropped significantly, though, especially for Bank-owned properties being literally dumped on the market.