BTW, I'm reporting from housing-crash-central Arizona this week. I've got four words:
"For Sale" signs everywhere.
And I mean 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.
December 26, 2007
FLASH: Ho-hum, Case/Shiller US home price report crashes faster and farther than ever recorded. Any questions?