Skip to comments.Home prices heading for triple-dip
Posted on 11/01/2011 5:24:19 AM PDT by TSgt
NEW YORK (CNNMoney) -- The besieged housing market has even further to fall before home prices really hit rock bottom.
According to Fiserv (FISV), a financial analytics company, home values are expected to fall another 3.6% by next June, pushing them to a new low of 35% below the peak reached in early 2006 and marking a triple dip in prices.
Several factors will be working against the housing market in the upcoming months, including an increase in foreclosure activity and sustained high unemployment, explained David Stiff, Fiserv's chief economist.
(Excerpt) Read more at money.cnn.com ...
How can this possibly be? I thought Obama and the Demorats repealed the Law of Supply and Demand as part of the “recovery plan”. I thought.....
Unless the FedGov monetizes the debt, I believe home prices could drop 80% or more from their peak. I remember when this first started, people like me were predicting a 20% drop and called doom and gloomers.
I also remember selling Sony CD players at Pacific Stereo back around 1981 for $1,300. We salespeople thought that was a ripoff and there was no reason why they could not make a profit at $300.
Even $300 seems, of course, ridiculously high today, as will today’s house prices tomorrow.
...unless they monetize the debt (hyperinflation). And I don’t think they have a choice, unless they want “hyper” Occupy events next spring followed by all out Civil War.
It is interesting how paradigms shift
I just know that I consider myself darned lucky that we bought a house priced at about a third of what the bank would have lent us, giving us a mortgage payment with escrow that amounted to about 15% of our gross income per month. Twelve years into our 30-year mortgage we have essentially zero equity thanks to the market, but at least we’re not significantly underwater.
Typical CNN and others rhetorical BS...triple-dip? LMAO.
I heard the business guys on FOX last night suggest that the is no “triple-dip”......its is one huge freefall that never hit bottom from the initial housing DIP.
If you read the article though, I think it’s pretty factual:
“a mild rally that was artificially spurred as banks slowed the processing of foreclosures following the robo-signing scandal”
Can Obama successfully run on trying new things in executive orders each week and proposing more give-aways as everything gets worse.
obama’s health care industry takeover has a nasty surprise for the housing market. A 4% tax on the sale price of an existing home. To go toward funding nationalized medicine.
Due to kick in after the 2012 election.
I believe it is a 3.8% tax on unearned income above $250,000 you are referring to.
How about going after the banks for inflating home prices?
Someone needs to simply figure out what people CAN afford and go from there.
If a person on AVERAGE makes X dollars per month then the mortgage payment should be X times .25. That can be used to figure out a house price.
These developments with HOA’s are what nobody wants right now.
Perhaps the HOA developments need to be dismantled.
My understanding is that the tax applies to the 250 figure but in the case of a sale of a house, the sale counts as income and is added to the adjusted gross income. So this would catch folks who sell a house less than 250.
Then the 3.8% applies.
Might not be absolutely accurate here, but saw this in the WSJ when details of obamacare started leaking out.
Same here. We bought what we could afford and owe what our home is currently worth. It’s better than being underwater.
On the upside I just reached a deal today on an investment log cabin in the Smokey Mountains that sold for $155K in 2006. I’m getting it for $75K...
It has $14K of documented annual rental income. I plan on putting every red cent back into the principal and paying it off as soon as I can so I can buy another one!
I agree with that.
First of all, where in the Smokies? Second, how did you find it? Third, anymore in that area?
The Kenyan’s goon squad must be running out of ideas at this point.