Are you sitting down?
I believe that US home prices (in dollar terms) may no longer fall as much as everyone here thinks.
No, nobody hijacked my keyboard. Yes, I'm sober.
Well then what the fu*k???
Pretty simple HP'ers: Inflation and dollar destruction.
The planned and purposeful destruction of the US dollar by Ben Bernanke and the US Federal Reserve Bank is now throwing us into an inflation spiral that will take the real prices of goods, services, commodities and assets to the moon. In dollar terms.
Meanwhile, the purchasing power of the dollar will be destroyed, and the loss of purchasing power of the unsuspecting sheeple making dollars will be even more dramatic. So watch for foreigners making Euros, Pounds, Renminbi or Rupee's to eventually swoop in and buy everything in sight.
So the NAR will trumpet that "median home prices are flat!", although when you factor in inflation (true inflation, not the government's bullshit number), or you convert the dollar price to gold or oil or Euros or soybeans or, well, pretty much anything, real house prices will plummet. In many towns by 50% or more from the peak. And you'll still have the 20% to 30% real price haircuts already seen in towns like Phoenix, Vegas, Miami, etc.
Here's some math - gold is up 28% vs. last year in dollar terms, while Case-Shiller median home prices are down 5% in dollar terms. So home prices have already dropped 33% this year (in gold terms). Get it now?
But in dollar terms, over time, it won't look so bad. And that's what Bush, Bernanke, the bankers and the NAR have planned.
The only question is - will the sheeple (and China) be smart enough to see through the scam?
Welcome to the New Serfdom.