WSJ has an opinion below. My opinion is above, some truly spectacular multiple bottoms.
House prices fell 23% from their July 2006 peak to October 2008, the latest data available, based on the S&P/Case-Shiller Home Price index, which tracks home values in 20 cities. Mr. Zandi expects an additional 10% drop to a bottom late this year.
Yet another 4th half of '08 recovery. Yawn.
7 comments:
I found the bottom! Several in fact! And they all look first-rate!
CWOC = Chicks WithOut Clothes? Is this part of a more detailed series of photos, by any chance?
I am not a fan of the Casey-Shiller Index because it combines bubble zone pricing with non-bubble zone pricing. Housing prices didn't fall 23% in non-bubble zones, they fell 40%+ so far in bubble zones, while prices in non-bubble zones were essentially flat or with small declines. It's the old Average vs Median debate.
Casey-Shiller also has some odd omissions. Why is Las Vegas on the list and not the much larger Houston? Why are KC and St. Louis not on the list, while Portland and Tampa are? Nashville is larger than a number of the cities on the Casey-Shiller. Why is it not included?
The End of the Financial World as We Know It
Companion article:
How to Repair a Broken Financial World
Great articles by Michael Lewis and David Einhorn. Of course, none of their well-thought-out ideas will ever see the light of day.
My biggest complaint about the article was that they suggested a housing rescue with a readjustment to the basis of the mortgage based on the current appraised value. Essentially this is the do-over plan that people on this site have been pissed off about. I'd be okay with that as long as we renters each received an equivalent lump sum cash payment.
Personal letter from Satan to Paulson.
The only reasonable explanation that I can come up with for the declining home prices is that "they" must be making more land. I was told that it was always a good time to buy since "they" aren't making more land. Apparently, "they" weren't listening.
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