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Home prices hit pre-boom levels in 14 US cities
Breitbart ^ | 3/29/11 | ap, ANNA HERRON and DEREK KRAVITZ

Posted on 03/29/2011 2:20:31 PM PDT by Nachum

NEW YORK (AP) - Damage from the housing bust is spreading to areas once thought to be immune.

In at least 14 major U.S. metro areas, prices are now at 2003 levels—when the housing bubble was just starting to inflate. Prices will likely fall further this year, making many people reluctant to buy or sell. That would push down sales and prices more.

The depressed housing industry is slowing an economy that has shown strength elsewhere. And it's starting to hurt those who bought years before the housing boom began. In some cities, people who have paid their mortgages for a decade have little or no home equity.

Prices have tumbled in familiar troubled spots, such as Las Vegas, Cleveland and Detroit. But they're also at or near 10-year lows in Denver, Atlanta, Chicago and Minneapolis—cities that weren't as swept up in the housing boom and bust.

"It's been tough on the lower class but it's filtering up," said Paul Dales, senior U.S. economist with Capital Economics. "It may be only a matter of time before it hits the wealthy."

(Excerpt) Read more at breitbart.com ...


TOPICS: News/Current Events
KEYWORDS: home; housingbubble; levels; preboom; prices; realestate; shtf; survival; survivalism; survivalist

1 posted on 03/29/2011 2:20:36 PM PDT by Nachum
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To: Jet Jaguar; NorwegianViking; ExTexasRedhead; HollyB; FromLori; EricTheRed_VocalMinority; ...

The list, ping

Let me know if you would like to be on or off the ping list

http://www.nachumlist.com/


2 posted on 03/29/2011 2:21:07 PM PDT by Nachum (The complete Obama list at www.nachumlist.com)
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To: Nachum
It just seemed appropriate.

3 posted on 03/29/2011 2:25:10 PM PDT by TSgt (Colonel Allen West & Michele Bachman - 2012 POTUS Dream Team Ticket!)
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To: Nachum
This can't be because I still see 25 year olds buying $450k houses on HGTV every night.
4 posted on 03/29/2011 2:26:53 PM PDT by throwback ( The object of opening the mind, as of opening the mouth, is to shut it again on something solid)
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To: Nachum
Huh. 2003. Why 2003? Why not 2004? Or 2005?

How about 2006? Why not 2006? Or 2007?

Why not 2008? That was the year the recession officially started right? The year the real-estate bubble popped?

Oh, wait. I know.

It's because housing prices in 2003 weren't as high as they were in subsequent years. The AP is cherry picking a year that fell before the housing collapse, and they had to go back to 2003 to find one that had prices lower than their cherry-picked sample shows today! Of course!

But, by that logic, they could have gone back to... I don't know... how 'bout 1940? In 1940, the median home price in the US was... I have it here... $30,600! And that price has been adjusted to the 2000 dollar!

Just think of it! Compared to 1940, why, Obama has made every homeowner almost a millionaire!

5 posted on 03/29/2011 2:31:23 PM PDT by Steely Tom (Obama goes on long after the thrill of Obama is gone)
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To: Nachum

This is actually good. It hurts, but it is necessary.

If we accept the data that there was no organic household earnings increases in the ‘00’s and that consumers spent debt, not income, then we need to basically unwind the housing asset class to pre-2001 levels, when the Fed started to inject money into the economy at absurd levels.


6 posted on 03/29/2011 2:32:45 PM PDT by NVDave
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To: Nachum

In the Tampa area they’ve been below that point for quite a while.

I know, I bought my house then.


7 posted on 03/29/2011 2:32:58 PM PDT by I still care (I miss my friends, bagels, and the NYC skyline - but not the taxes. I love the South.)
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To: throwback
"This can't be because I still see 25 year olds buying $450k houses on HGTV every night."

Must be old reruns. Check Divorce Court for updates...;-)

8 posted on 03/29/2011 2:35:55 PM PDT by red tie
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To: Nachum
Just before the real estate crash a few years ago because of sub-prime loans and a corrupt fannie mae/freddie mac, I had been thinking about and sharing my concerns about something else. My concern was with what appeared to be overbuilding and a saturation of homes, many of which were spec houses. Developers were buying up farm land and building. At the beach every piece of unoccupied land was being built upon and rentals of the old timers began to fall off. Now bankruptcies are rampant. When they report 13% of homes are unoccupied I wonder how many fall into the category above.
9 posted on 03/29/2011 2:36:43 PM PDT by elpadre (AfganistaMr Obama said the goal was to "disrupt, dismantle and defeat al-Qaeda" and its allies.)
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To: TSgt
It just seemed appropriate.

How so? The George Jefferson character was the portrayal of a man who created wealth through his own initiative, creativity and hard work. He knew the value of a dollar.
10 posted on 03/29/2011 2:42:30 PM PDT by posterchild
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To: Steely Tom
Huh. 2003. Why 2003?

In 2003 George Bush took office and home values started climbing.

In 2008 "insiders" knew that 0bama was going to win in November and unloaded.

0bama caused home values to fall even before he was elected and even more after he took office.

11 posted on 03/29/2011 2:46:08 PM PDT by TYVets (Pure-Gas.org ..... ethanol free gasoline by state and city)
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To: NVDave
If your a homeowner, I can't see anything good about this. The wealth (assets) of the average homeowner has been destroyed (reduced equity).

Now for the really good news. In numerous areas I've looked at, home prices are now at levels of the early 90’s. In addition, with even tougher mortgage guidelines about to take effect, values are going to continue going lower, leading to even more foreclosures. Also being destroyed are all the business's and people who used to make their livings on Real Estate sales.

Now, to those who aren't homeowners and feel it won't effect them, these lender loses will likely be covered by more tax payer dollars.

If anyone thinks our economy can improve without replacing this component, they are mistaken.

12 posted on 03/29/2011 3:13:37 PM PDT by Rational Thought
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To: elpadre
Just before the real estate crash a few years ago because of sub-prime loans and a corrupt fannie mae/freddie mac,

FAIL

The roots ofthe collapse go much farther back than that.

To the regime of Jimmy Carter, under whom housing appraisors no longer had to index a home against the population density, the number of homes in the area, and the median income in assessing the value of a home.

It became okay to simply compare the selling price of recently sold comparable homes. the unstable and out of control fluctuations in home prices date from this period.

13 posted on 03/29/2011 3:27:08 PM PDT by MrEdd (Heck? Geewhiz Cripes, thats the place where people who don't believe in Gosh think they aint going.)
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To: Rational Thought
In addition, with even tougher mortgage guidelines about to take effect, values are going to continue going lower, ... Also being destroyed are all the business's and people who used to make their livings on Real Estate sales.

So who's benefiting? In my area, young couples starting out in life can buy a nice home on a single income, so the wife can stay at home with the kids. Before, theyd be spending upwards of 50 % of 2 incomes on monthlies.. Also, some people who could only rent before can now buy, as long as they have a job.

Home prices were flat between 1989 and 1999. No where is it written that housing is guaranteed to be the way to make an easy buck. For every person who gets screwed, somebody else benefits. Such is life.

14 posted on 03/29/2011 3:42:04 PM PDT by Nonstatist
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To: NVDave

>> This is actually good. It hurts, but it is necessary.

YES.


15 posted on 03/29/2011 3:54:26 PM PDT by Nervous Tick (Trust in God, but row away from the rocks!)
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To: Nachum

Here in Northern Virginia (Washington DC Metro area), house prices are steadily climbing. Fortunately we bought our house ten years ago. I’ve got at least 350K in equity, conservatively.


16 posted on 03/29/2011 3:55:07 PM PDT by Poundstone (A recent Federal retiree and proud of it!)
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To: Nonstatist

No where is it written that housing is guaranteed to be the way to make an easy buck. For every person who gets screwed, somebody else benefits. Such is life.

I see it that way too, and I'm one into some (but not disastrous) loss. It was clearly crazy the way housing was going, largely by virtue of Fannie Mae, liberalism, etc. To be a conservative means to be conservative, not easy Madoff-type greed. I see it that way also with the stupid discipline of "Economics."

The United States, its phony political leaders, and apparently the majority of adult juveniles who cannot see beyond them, has really really lost it.

The Tea Party the only current hope.

Johnny Suntrade

17 posted on 03/29/2011 4:21:00 PM PDT by jnsun (The Left: the need to manipulate others because of nothing productive to offer.)
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To: Nonstatist
Odds are great that any young couple won't be able to qualify for financing under the current government dictated guidelines (credit rating, depth of credit, down payment, job stability, quality of employment and the crapshoot of the new Government appraisal process).

While I agree that a free market provides for when someone loses someone else gains, the current market is a government controlled market, not a free market. When the option of financing is essentially eliminated from a marketplace, cash is truly king and prices of the product will fall. Add that to a terrible economy and watch housing prices continue their plunge.

Who's truly benefiting is a great question. Sorry to say, what we're in the midst of is a transition from a nation of home ownership to a nation of renters.

18 posted on 03/29/2011 4:22:06 PM PDT by Rational Thought
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To: MrEdd
And, I suspect city planning commissioners played a role by approving housing developments that were not feasible considering population and available units on hand.
19 posted on 03/29/2011 4:30:03 PM PDT by elpadre (AfganistaMr Obama said the goal was to "disrupt, dismantle and defeat al-Qaeda" and its allies.)
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To: Rational Thought

WHO is benefiting??

It seems to me that this is similar to the government taking over the student loan business. They OWN that, 100%. Now, the most frequently mentioned number of 90% tells me that this IS the benefit. The GOVERNMENT will control who lives where. There will only be 10% of houses that WON’T be owned by the government. IF it even stays that way. Maybe it will only be 1%, and the rest of us will be at the unmerciful whims of bureaucrats in control of our lives.

That is what I wonder about, there MUST be an end game to this. AND not to our benefit, either.

AND just like the student loans will be passed onto their children, if they have any, I would bet that the housing loans will be a ball and chain around anybodies foot until every last cent by their great grandchildren is paid.

That is what I fear.


20 posted on 03/29/2011 4:37:13 PM PDT by TruthConquers ( Delendae sunt publicae scholae)
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To: MrEdd

Thank you.


21 posted on 03/29/2011 5:04:30 PM PDT by Seven plus One
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To: Rational Thought
Odds are great that any young couple won't be able to qualify for financing under the current government dictated guidelines (credit rating, depth of credit, down payment, job stability, quality of employment and the crapshoot of the new Government appraisal process).

Ummm. It used to be you had to put 20 % down to buy a house, thats how it is in Canada pretty much. If you can pony up that much you can pretty much get a loan, period. ..

Sorry, but the Ponzi scheme days of house flipping are, rightly, over.

22 posted on 03/29/2011 5:37:19 PM PDT by Nonstatist
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To: Nonstatist
Even with a 20% down payment, getting a loan approval is anything but easy.

I've heard the Canada argument before. But, the US housing market is not the Canadian market and as bad as their Government can be, they don't have Barney Frank, Chris Dodd and Andrew Cuomo writing lending rules and procedures.

Regardless of you feeling the housing market was a Ponzi scheme (then, what would you call the Stock Market?), the tremendous amount of equity lost by regular homeowners is bad, not to mention all the industries which are suffering because of the continued declines and the overall effect on the Nations economic health.

I've said it before, as goes the housing market so goes the economy.

23 posted on 03/29/2011 6:39:44 PM PDT by Rational Thought
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