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A Record Drop In Home Prices
Washington Post ^ | October 26, 2006 | Kirstin Downey

Posted on 10/26/2006 12:53:25 PM PDT by GodGunsGuts

The price of existing homes last month fell 2.2 percent, the largest monthly decline in the almost four decades the number has been tracked, according to an industry report released yesterday.

Nationwide, the number of existing single-family homes sold fell 14.2 percent in September compared with September 2005, according to the report from the National Association of Realtors. The number of sales has fallen each month since March.

Prices fell everywhere in the country, with the Northeast and West most affected. Declines were more moderate in the South, which includes the Washington area....

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


TOPICS: Business/Economy
KEYWORDS: bubble; bubblebrigade; depression; despair; doom; frbubbleheads; gggsalesman; goldsalesman; miserytonight; realestate; tinfoil
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1 posted on 10/26/2006 12:53:27 PM PDT by GodGunsGuts
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To: Pelham; ex-Texan; durasell; djf

ping


2 posted on 10/26/2006 12:55:35 PM PDT by GodGunsGuts
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To: GodGunsGuts

with the record increase this is fine, my home is still up34% in 1 year


3 posted on 10/26/2006 12:57:31 PM PDT by italianquaker (Democrats and media can't win elections at least they can win their phony polls.)
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To: GodGunsGuts

Hey, what's this news about central banks in Europe dropping the dollar and trading in Euro's.


4 posted on 10/26/2006 12:58:03 PM PDT by eyedigress
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To: eyedigress

This has been an ongoing discussion going on between many nations. Some of it is just petty/political, some of it is because many nations fear a free fall in the USD (based on our national debt, triple deficits, etc). None of them want to be left holding the bag, should the dollar fall another 30 or 40 percent.


5 posted on 10/26/2006 1:03:43 PM PDT by GodGunsGuts
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To: eyedigress

Have you heard that as a fact?


6 posted on 10/26/2006 1:04:21 PM PDT by djf (I'm not ISLAMOPHOBIC, just BOMBOPHOBIC!! Whether that's the same is up to Islam!!!)
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To: GodGunsGuts

So what?

Fewer McMansions sold this month than sold last month, so the "average" price of all houses sold this month has gone down.

Big whoop....


"Lies, d@#m lies and statistics."


7 posted on 10/26/2006 1:04:22 PM PDT by pfony1
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To: djf

Just rumors http://today.reuters.com/business/newsarticle.aspx?type=ousiv&storyID=2006-10-26T144946Z_01_WBT006123_RTRIDST_0_BUSINESSPRO-ECONOMY-GREENSPAN-DOLLAR-DC.XML


8 posted on 10/26/2006 1:08:06 PM PDT by eyedigress
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To: GodGunsGuts
Prices fell everywhere in the country, with the Northeast and West most affected.

The MSM is slipping. That should have been, "women, children and minorities most affected." Some editor is going to get fired over this.

9 posted on 10/26/2006 1:09:26 PM PDT by ladtx ("It is fatal to enter any war without the will to win it." -- -- General Douglas MacArthur)
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To: pfony1

Go figure... People are speculating in the stock market, rather than making housing unaffordable. So long as this doesn't develop into an all-out, economy-wrecking crash, I'm happy.


10 posted on 10/26/2006 1:09:43 PM PDT by dangus (Pope calls Islam violent; Millions of Moslems demonstrate)
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To: GodGunsGuts; Toddsterpatriot

Maybe Toddler should have bought some gold last week. :^)


11 posted on 10/26/2006 1:10:55 PM PDT by eyedigress
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To: pfony1

Fewer sales doesn't mean a decreasing average, or have any effect on average other than making it more volatile.


12 posted on 10/26/2006 1:14:52 PM PDT by MrShoop
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To: ladtx
another factor to hit home prices in the coming years will be the 78m baby boomers retiring. Its already started and as they retire, they will most likely move to a warmer, cheaper area. The baby boomers will start to hit 63 in 2010.

The folks that can afford early retirement are already moving. Look for prices to increase in the south and southwest, especially states with no state income tax (texas, florida, nevada)

13 posted on 10/26/2006 1:16:07 PM PDT by sten
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To: eyedigress

Toddler and Co. have backed themselves in a corner. They won't be buying gold any time soon. But the blood will most certainly run out of their collective faces when gold resumes its next leg up.


14 posted on 10/26/2006 1:17:17 PM PDT by GodGunsGuts
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To: GodGunsGuts
Dow hit a new record;

Oil Price Dropped Again;

NASDAQ at 6 year high;

Durable Goods UP largest amount in 6 years;

Terrible, just Terrible
15 posted on 10/26/2006 1:24:45 PM PDT by Mikey_1962 (If you build it, they won't come...)
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To: GodGunsGuts
because many nations fear a free fall in the USD (based on our national debt, triple deficits, etc).

More nonsense you keep repeating but can never justify. Just like your babbling on about the fundamentals driving gold. Our annual national debt is just 2% of GDP. Historically, it's averaged about 2.7%. You've also never been able to explain -- at least not in any way that makes sense -- how the triple(?) deficits will cause the dollar to drop. Care to try again, or are you tired of being shown to have no idea what you're talking about?

should the dollar fall another 30 or 40 percent

Another 30-40%? Against what currency and over what time frame? Has the government not been able to sell any of it's debt instruments because of this fear of being left holding the bag?

What chart from goldbug Sinclair will you be using today?

16 posted on 10/26/2006 1:25:37 PM PDT by Mase
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To: Mikey_1962

I'm doing well, thank you very much! :^)


17 posted on 10/26/2006 1:26:05 PM PDT by eyedigress
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To: Toddsterpatriot; 1rudeboy; expat_panama; nopardons; BeHoldAPaleHorse; Petronski; Fan of Fiat
Goldbug in the house ping.
18 posted on 10/26/2006 1:27:38 PM PDT by Mase
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To: GodGunsGuts

Yeah, a record drop after a hugh record rise. Come on, let's get series here.


19 posted on 10/26/2006 1:28:04 PM PDT by umgud (I love NASCAR as much as the Democrats hate Bush)
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To: Mase

WoW! Look at that dollar go!


20 posted on 10/26/2006 1:28:47 PM PDT by eyedigress
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To: GodGunsGuts
The price of existing homes last month fell 2.2 percent, the largest monthly decline in the almost four decades the number has been tracked.

Houses are still 5 times what they cost 40 years ago. Housing prices will have to fall an awful lot before things get as "bad" as they were 40 years ago.

21 posted on 10/26/2006 1:29:01 PM PDT by Nathan Zachary
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To: eyedigress

They should have bought gold 4 years ago.


22 posted on 10/26/2006 1:32:50 PM PDT by Nathan Zachary
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To: Nathan Zachary

I agree, even 2 years ago it was at 412.00.


23 posted on 10/26/2006 1:36:41 PM PDT by eyedigress
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To: GodGunsGuts

This is MSM slight-of-hand. They want to complain about the economy, but can't. They'd love to complain about the Dow, but can't. So they focus on a slight correct in housing. I bet the MSM has ran many more articles on the housing adjustment than the Dow at 12,000.


24 posted on 10/26/2006 1:38:38 PM PDT by Barney Gumble (A liberal is someone too broadminded to take his own side in a quarrel - Robert Frost)
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To: Nathan Zachary

Gold is a lousy long term investment.


25 posted on 10/26/2006 1:41:29 PM PDT by Barney Gumble (A liberal is someone too broadminded to take his own side in a quarrel - Robert Frost)
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To: Barney Gumble

I don't know about lousy. But it has most certainly been an excellent investment for the last five years.


26 posted on 10/26/2006 1:42:58 PM PDT by GodGunsGuts
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To: Barney Gumble

Gold and housing are both bad long term investments - so both sides have their delusions.


27 posted on 10/26/2006 1:46:24 PM PDT by MrShoop
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To: GodGunsGuts
!

See also:

Days Before Halloween, NBC Treats Real Estate Like Dawn of the Dead ^
  Posted by freemarket_kenshepherd
On News/Activism ^ 10/26/2006 1:16:36 PM CDT · 13 replies · 401+ views


Business & Media Institute ^ | October 26, 2006 | Ken Shepherd
If NBC’s Carl Quintanilla is in a bind about what to wear to the NBC News Halloween party, he could always go as a “housing bubble.” With only five days until Halloween, NBC “Today” show sought to spook viewers with yet another negative story on the housing market. But Quintanilla dressed up his attack on the economy with the same disguise The New York Times used a day earlier: a look at how hardware retailer Home Depot (NYSE: HD) is changing its business model to retain customers during a cooling housing market. “There’s even more bad news for the housing...

28 posted on 10/26/2006 1:47:09 PM PDT by Stultis
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To: MrShoop
Gold/PM stocks are presently a good long-term investment because of the fundamentals (money supply, national debt, triple deficits, etc).
29 posted on 10/26/2006 1:49:45 PM PDT by GodGunsGuts
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To: eyedigress
What price could I have bought it for?
30 posted on 10/26/2006 1:49:59 PM PDT by Toddsterpatriot (Goldbugs, immune to logic and allergic to facts. You know who you are.)
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To: GodGunsGuts; Petronski

I'll start:

We're Doomed!!
It's Bush's Fault!!
Housing Bubble!!
Greenspan's Fault!!
Buy Gold!!

Did I cover it all?


31 posted on 10/26/2006 1:50:42 PM PDT by RockinRight (Maintaining a Republican majority is MORE IMPORTANT than your temper tantrum.)
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To: GodGunsGuts

Oh, the humanity! Now, the American Dream of home ownership is within sight again for the middle class.


32 posted on 10/26/2006 1:55:28 PM PDT by rabidralph
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To: GodGunsGuts

So have the Feds. If they raise rates, tens of thousands of ARMS will adjust upward.

If they don't, foreign investors will flee the dollar.


33 posted on 10/26/2006 1:58:50 PM PDT by djf (I'm not ISLAMOPHOBIC, just BOMBOPHOBIC!! Whether that's the same is up to Islam!!!)
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To: djf
If they don't, foreign investors will flee the dollar.

LOL!

34 posted on 10/26/2006 2:02:13 PM PDT by Toddsterpatriot (Goldbugs, immune to logic and allergic to facts. You know who you are.)
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To: GodGunsGuts

Just a normal correction in a market that was overextended to the upside. This happens every day in the stock market. Are you ever going to move on to another subject?


35 posted on 10/26/2006 2:04:41 PM PDT by defenderSD (Blogging from a secure, undisclosed location in the southwestern United States.)
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To: Mase

==Against what currency and over what time frame?

Against our major trading partners, and in a shorter time that it took to go from 120 to 80.

==Has the government not been able to sell any of it's debt instruments because of this fear of being left holding the bag?

This is nothing new, Mase. We have been warned, and will continue to be warned until the rest of the world decides to take action to protect themselves from our deficits (or until we take action to lower our deficits). When the US begins to take serious steps to address the triple deficits (not to mention the national debt) that is when I will exit gold...and not a moment sooner.

http://www.boston.com/business/globe/articles/2005/02/05/world_banks_warn_us_on_deficits/


36 posted on 10/26/2006 2:06:16 PM PDT by GodGunsGuts
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To: Toddsterpatriot; djf

That is hilarous. Foreigners will flee the dollar for what....for gold...LOL? The US is the best place to invest in the entire world and foreign investors will continue to buy dollars so they can invest in America.


37 posted on 10/26/2006 2:07:23 PM PDT by defenderSD (Blogging from a secure, undisclosed location in the southwestern United States.)
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To: Toddsterpatriot
That is such a dumb headline. The "record drop" is merely a small percentage of correction of the record rally in home prices. You always get bigger corrections after bigger rallies. Do these people learn anything in journalism school other than how to write?
38 posted on 10/26/2006 2:11:27 PM PDT by defenderSD (Blogging from a secure, undisclosed location in the southwestern United States.)
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To: GodGunsGuts
Against our major trading partners, and in a shorter time that it took to go from 120 to 80.

You have any context, charts or facts to flesh out your panic? Or are we supposed to just translate your gibberish from your native goldbug?

39 posted on 10/26/2006 2:12:54 PM PDT by Toddsterpatriot (Goldbugs, immune to logic and allergic to facts. You know who you are.)
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To: sten
"78m baby boomers retiring. . . .The baby boomers will start to hit 63 in 2010."

Hint, very many baby boomers retired early. They just haven't started to draw SS yet. Early retirees don't need it.

yitbos

40 posted on 10/26/2006 2:15:10 PM PDT by bruinbirdman ("Those who control language control minds. " - Ayn Rand)
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To: GodGunsGuts
The price of existing homes last month fell 2.2 percent, the largest monthly decline in the almost four decades

If I didn't know any better this might scare me.

Housing has slowed so you become purveyor of doom and talk about fundamentals that don't exist. Over the past two months housing has slowed a great deal and you've cited that as vindication of your doomsaying. What you fail to recognize is that over that same two month period the Dow has increased by more than 6%. This tells me that investors are confident in our economy and that your fundamentals are fundamentally flawed.

41 posted on 10/26/2006 2:16:48 PM PDT by Mase
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To: Toddsterpatriot
They are worried that our national debt and our triple deficits will cause the dollar's downtrend to resume (and accelerate):


42 posted on 10/26/2006 2:22:24 PM PDT by GodGunsGuts
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To: Barney Gumble
"Gold is a lousy long term investment."

I have a tenth-ounce goldpiece. It has not earned a penny of interest in 20 years.

yitbos

43 posted on 10/26/2006 2:22:57 PM PDT by bruinbirdman ("Those who control language control minds. " - Ayn Rand)
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To: defenderSD
"The US is the best place to invest in the entire world and foreign investors will continue to buy dollars so they can invest in America."

Why?

In a word "liquidity".

yitbos

44 posted on 10/26/2006 2:28:37 PM PDT by bruinbirdman ("Those who control language control minds. " - Ayn Rand)
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To: bruinbirdman
Goldstocks have beem appreciating faster and paying better dividends than most other investments for the last five years.


45 posted on 10/26/2006 2:30:06 PM PDT by GodGunsGuts
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To: GodGunsGuts
Wow, scary chart. Looks like the dollar has tanked since 1969. Are we doomed yet? Our economy must have been crushed by that drop. We must not be the biggest economy in the world anymore.

Any facts to go with your 120 to 80 factoid?

46 posted on 10/26/2006 2:30:59 PM PDT by Toddsterpatriot (Goldbugs, immune to logic and allergic to facts. You know who you are.)
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To: GodGunsGuts
and paying better dividends

Now you're just making stuff up. What's the dividend yield on the Amex Gold Bugs?

47 posted on 10/26/2006 2:32:19 PM PDT by Toddsterpatriot (Goldbugs, immune to logic and allergic to facts. You know who you are.)
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To: GodGunsGuts
We have been warned, and will continue to be warned until the rest of the world decides to take action to protect themselves from our deficits

The World Bank is warning us? ROFL!

We had trade and budget deficits throughout the 80's and 90's and your precious metal sucked wind.

Look at that. The Treasury is having so much trouble unloading our debt instruments that the yield has moved from 5.1% to 4.72% over the past six months. Yeah, they're really running from the dollar. LOL!

48 posted on 10/26/2006 2:34:21 PM PDT by Mase
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To: sten
>>Look for prices to increase in the south and southwest, especially states with no state income tax (texas, florida, nevada)<<

Possibly but Texas property taxes are causing this early retiree to move to a State with an income tax.

49 posted on 10/26/2006 3:08:18 PM PDT by Muleteam1
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To: Nathan Zachary
Houses are still 5 times what they cost 40 years ago.

There can be no arguing the fact that, for most Americans in most states, owning a home is a good investment. You have to live somewhere, so why not take the money it would cost to rent (after taking the mortgage and property tax deduction) and buy a house? It's better than putting it into just about any other ordinary investment (even gold!) and you get to live rent-free.

Where the whole house of cards begins falling apart, unfortunately, is when you have new buyers -- a working couple in their 20s, for example -- signing up for a variable-rate, or worse, an interest-only, loan that they barely qualify for. Minimum down payment, no other assets but a car (which is financed, also) and a baby or two on the way or planned.

Should the husband or wife lose his or her job, they won't be able to make their house payments. After six months, the lender will foreclose. The house may have increased in value, but don't expect the poor couple to benefit from that after it's foreclosed on. And don't expect the bank to put any money into as much as cosmetic improvements once they get title, because banks don't do that; they just want to get it off their books.

So, a house that's worth maybe $300K will go on the market for $275K and sell for $270K, leaving the bank whole but the former owners wiped out. They won't be buying again soon.

Multiply this scenario by literally hundreds of thousands and you understand why it is that home prices can take a dip, even though, as you say, they are way above what they were 40 years ago.

It's just that only a small fraction of the population has been in their home long enough to realize that kind of gain.

50 posted on 10/26/2006 3:17:43 PM PDT by logician2u
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