December 26, 2007

FLASH: Ho-hum, Case/Shiller US home price report crashes faster and farther than ever recorded. Any questions?


BTW, I'm reporting from housing-crash-central Arizona this week. I've got four words:

"For Sale" signs everywhere.


Worst decline in American house prices may not be finished yet

American house prices declined at their fastest rate for more than six years in October, with homes in Miami losing 12 per cent of their value, it emerged yesterday.

According to the Standard & Poor’s/Case Shiller index of house prices in the US, the value of existing, single-family homes fell 6.7 per cent in October compared with the same period the year before.

The figures indicate that America’s housing recession – already the worst for 16 years – is far from over. Professor Robert Shiller, co-founder of the index and an economics academic at Yale University, said: “No matter how you look at these data, it is obvious that the state of the single-family housing market remains grim.”

The 6.7 per cent fall surpasses a 6.3 per cent drop in April 1991.

Check out these quotes today from Schiff and the discredited laugh-riot Lawrence Yun as well:

"This is just the beginning," said Peter Schiff, a Darien, Conn.-based investment adviser known for his bearish views of the housing market (and being really f*cking right). "Pressure is there for much, much lower prices."

According to Schiff, one factor that will drive prices lower is a change in buyer psychology. "The prices that existed were completely artificial, a function of speculators who are no longer in the market," he said. "Some buyers thought they were going to get rich."

Today, however, that demand has all but disappeared. "More people want - or have - to sell," said Schiff, "because prices aren't going up, so buyers have to look at the actual cost of owning a home."

Lawrence Yun, (the laughable and discredited) chief economist for the National Association of Realtors and among the most optimistic of industry insiders, conceded that large inventories will mean further price declines. "Price growth during the boom was clearly unsustainable. This is the payback," he said.


Anonymous said...

That comment by Yun, at least out of context from the rest of whatever he said, is the first thing he said that is credible. High inventory, low demand results in lower prices and this is all "payback" for the bubble. WOW!!!

az_mtb said...

Great article about who to blame for the housing bust.

Blame abounds for housing bust
It would seem that the MSM is finally catching on!

Anonymous said...

Lossess to be atleast US$1Trillion boys and girls.... We are in recession and going deep. This past xmas was financed by credit cards that wont be paid back. Let the sheeeet hit the fan!

Anonymous said...

yes i have one question. where is dopes?

Anonymous said...

"Price growth during the boom was clearly unsustainable. This is the payback," he said.

Paybacks a BIT_H MotherF_c_er!

FlyingMonkeyWarrior said...

Paul Trouncing Field In AOL National Straw Poll - Vote!

Anonymous said...

Yep, Realtwhores will run out of "For Sale" signs again in Phoenix!

I had to laugh yesterday I drove past a house in the North Valley (just this side of the "magic" Scottsdale zip code) that had a "For Sale" sign with all the tag along signs descending. But the biggest sign was the "MOVING SALE" sign with the words EVERYTHING MUST GO. What they forgot to add was . . . So I can make the deposit on the 1 bedroom apartment I'll be renting in January! The funny thing is that this older home on an acre lot was sold about two years ago. I think the adjustable, interest only loan is resetting soon. I'll bet they walk away and mail in the keys.

SeattleMoose said...

Mr. Yun is like a shining beacon of truth in a sludge plant. He "concedes"....LOL!!!!!

I have heard he is going to appear in JackAss #5 as...himself.

Anonymous said...

Correct me if I'm wrong but isn't this the guys who compare prices not by looking at median selling price which tells little, but rather by tracking how much specific houses have increased or decreased in values. A much more accurate picture of whats going on.

Cow_tipping said...

Speculators haven't disappeared ... are you stupid Schiff ... They are there, just now they are in as sellers and are racing to the bottom ...

GenX said...

Well After two years of reading Housing Panic and being a daily reader..

Finally on the local news here in Miami the headline was Housing prices plummett.

Its just the start quickly moving to desperation by JUNE. Once all hope of selling during

the "season" is gone, or hope to sell to someone with Euro's LOL.

Anonymous said...


Anonymous said...

cook with Yun

Yoski said...

"Forgiven debt not taxable"
While it may seem unfair on the surface, it will actually accelerate price declines. In the past, one incentive to keep making payments on a home with negative equity was the IRS 1099 form. You owed income tax on forgiven debt. The difference between the amount you owe and the amount ultimately recovered by the lien holder.
Now many home debtors have little incentive to keep on making payments on houses that are under water. OK, you're in credit purgatory for 7 years, just enough time to save up for a down payment. Mail in the keys and make it somebody else's problem. That means more foreclosures which in turn puts even more downward pressure on prices. Beautiful, I love it!

brokersleaveyoubroke said...

"Price growth during the boom was clearly unsustainable. This is the payback," he said.

Interesting. He knew it was unsustainable but yet all through the boom hs said it was a great time to buy. And I don't remember the NAR ever saying it was unsustainable during the boom

Veronica Lodge said...

RE: "For Sale" signs everywhere. And I mean EVERYWHERE."

And this is a bad thing?

Not according to the National Ass. of Realtwhores:

"Existing-Home Sales to Trend Up in 2008
WASHINGTON, December 10, 2007"

"Existing-home sales are projected to trend up in 2008, with pending home sales showing a slight near-term rise, according to the latest forecast by the National Association of Realtors®... Lawrence Yun, NAR chief economist, said the worst part of the credit crunch has already worked its way through the data."

This cheery NAR fantasy mixes truth with lies and comes to the conclusion that, “Even with a modest decline in the national aggregate price this year, it’s important to keep in mind that nearly two-thirds of the metro areas in the U.S. are showing price increases.”

So there you go. Who better than the National Ass. of Realtwhores to predict a rosy future of sunshine, lollipops and rainbows in the thriving Real Estate Wonderland?