Wednesday, June 1, 2011

Housing Price and Home Ownership Croak

[Written in comments on Balloon Juice where, as usual,  it sank without a trace. I am rescuing it here.]

Prices are plummeting because the bubble is still bursting. Take a look at the charts on this page. I think we’ve got about two years to go. See also this Calculated Risk article. Note this:

The aggregate data suggest that in 2010 the homeownership for most age groups was probably below 1990 rates! Last week’s report, then, was clearly the BIGGEST STORY ON US HOMEOWNERSHIP in many, many years. So … why the lack of media coverage?

So I suppose prices will drop below pre-depression levels, unless the large number of houses with clouded titles—thank you banksters—reduces availability sufficiently to create a shortage.