America's house prices are falling even faster than during the Great Depression
AS HOUSE prices in America continue their rapid descent, market-watchers are having to cast back ever further for gloomy comparisons. The latest S&P/Case-Shiller national house-price index, published this week, showed a slump of 14.1% in the year to the first quarter, the worst since the index began 20 years ago. Now Robert Shiller, an economist at Yale University and co-inventor of the index, has compiled a version that stretches back over a century. This shows that the latest fall in nominal prices is already much bigger than the 10.5% drop in 1932, the worst point of the Depression. And things are even worse than they look. In the deflationary 1930s house prices declined less in real terms. Today inflation is running at a brisk pace, so property prices have fallen by a staggering 18% in real terms over the past year.
9 comments:
Randy,
Not sure if you're a Ron Paul guy or not, but I just finished his book The Revolution: A Manifesto. Excellent book. Chapter 6 is especially good as it deals with money. A particularly eye-opening stat: between 1998 and 2005 home prices increased by 45 percent! Of course a correction is necessary!
Dear Randy,
Just a note to say how much I enjoy your web site, please keep up the good work!
Frank Wheeler
Reno, Nevada
That is a staggering chart. Wanted to let you know about this guy in case you don't already. His weekly columns are a very good read. Check out the archives. Have a great weekend!!
http://www.financialsense.com/stormwatch/geo/pastanalysis/2008/0530.html
Justin
http://www.jrnyquist.com/
guess the other link was to long, lol
Absolutely Staggering Housing Chart!
yes it is
Justin: yes I read J R Nyquist. I just posted on Mr. Mortgage - Americans have a choice: they can either take their lumps or sell their country down the drain.
God bless America
Matt,
Yes, I think Ron Paul is the only candidate worth voting for--the rest are "Owned" and say what the masses want to hear. These double talkers, even if they wanted to, would be unable to implement any major change from present day.
I would like to read that book.
Frank Wheeler--much appreciated!
JUSTIN, welcome back! Yes, I have read many of Jeffrey Nyquist's articles, but havent see that one until you pointed it out. Very Good! I'll post it up on the main page.
45North, Haven't heard from you in a while... Good to see your post.
Yes, we are way beyond easy choices and have only two to chose from: (1) Deflation/Depression or (2)Destruction of our currency & hyperinflation -- which will probably lead us into a depression anyway (just delayed a bit).
Looks like the powers that be have opted for #2
thanks to all for posting up
Randy
Either way we are in for trying times. At age 39 my generation has had little struggle. We've had much distraction, silly pursuits, and bread & circuses.
Perform your own due diligence, however, I suggest buying precious metals, learning survival skills, and investing in a hobby farm. Do this with your family and/or with others. Investigate ecovillages or community housing. Many offer internships. Arcosanti is one.
Consumerism is a monumental fraud. Check out a documentary called The Century of Self at Google video.
God bless,
PDM
I do not think anyone wanted to believe that the housing boom would go bust.
Housings a mess.
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