Wednesday, January 12, 2011

US housing market now worse than Great Depression and heading lower

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1/11/11, "Housing Market Slips Into Depression Territory," CNBC.com, C. Perman

"In the past few years, we’ve all been careful to choose our words carefully, not calling it a recession until it fit the technical definition and avoiding any inappropriate use of the “D” word — Depression.
  • Things were bad but the broader economy never reached Depression territory.

The housing market, on the other hand, just crossed that threshold.

worse than the 25.9-percent decline seen during the Depression years between 1928 and 1933, Zillow reported.

November marked the 53rd consecutive month (4 ½ years) that home values have fallen.

  • What’s worse, it’s not over yet:

Home values are expected to continue to slide as inventories pile up,

  • and likely won't recover until the job market improves."...

(My understanding is the private sector job market can't possibly improve since we've exported too many jobs. ed.)

via Hot Air


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