Home prices near a double dip (6 straight months of decline) (employment, minimum wage)
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Home prices near a double dip - 6 straight months of decline
NEW YORK (CNNMoney) -- January home prices fell for the sixth month in a row, edging closer to a double dip.
The S&P/Case-Shiller home price index covering 20 major markets fell 3.1% year-over-year, hovering near the market's bottom set in April 2009.
"January brings us weakening home prices with no real hope in sight for the near future," says David M. Blitzer, a spokesman for S&P.
The dismal report followed other negative housing market indicators recently. Sales of existing homes were off nearly 10% in February and new homes sales were at a record low. "The housing market recession is not yet over," said Blitzer, "and none of the statistics are indicating any form of sustained recovery. At most, we have seen all statistics bounce along their troughs; at worst, the feared double-dip recession may be materializing."
If you want the housing market to recover it has to drop below the starting point of the bubble first. Front Page This is a good peace on the housing bubble and its continued decline. There are a lot of cross links on it as well good reading, chilling as well.
If you want the housing market and with it the economy to recover any time soon, then we need to have more income to support the higher housing prices. We can't get back to having a housing bubble that was a once in a lifetime event. But we can have sustained housing price increases. To treat the symptoms you need more bottom end income. (The margin determines the housing prices.) I’ve been talking about a 4X on the minimum wage this will tend to support higher housing prices. We need a building moratorium, this will tend to stop the over production of houses and with it that will tend to support higher prices. We need to print and I mean print not borrow from the fed a bunch of money for stimulating the economy (give it to everyone to spend). We have too much debt and we don’t need to add to it. We need to tax the payment of interest on debt. This will make the privet interest rates higher than the public ones. It will tend to keep the interest rate on the national debt low as we pay down privet and public debts.
If you want the housing market and with it the economy to recover any time soon, then we need to have more income to support the higher housing prices. We can't get back to having a housing bubble that was a once in a lifetime event. But we can have sustained housing price increases. To treat the symptoms you need more bottom end income. (The margin determines the housing prices.)
Prices will continue to drop. Many homes are still overvalued.
Japan has been at this for over 20 years. If you want higher prices then you need more income to support them. It is called inflation. It is far better than deflation. But what we need wage/price inflation.
Japan has been at this for over 20 years. If you want higher prices then you need more income to support them. It is called inflation. It is far better than deflation. But what we need wage/price inflation.
It's much cheaper to rent an identical house than to pay a mortgage. Simple math.
It's much cheaper to rent an identical house than to pay a mortgage. Simple math.
Then the owner is going to walk away from the rental. The golden ruel of real estate is that it has to be cheaper to own than to rent. The prices are going to keep coming down until it is cheaper to own than to rent. So we need to stop producing more houses. We need more demand for houses. If you want more demand then you need everyone that has a full time job to be able to afford to buy a house. That means setting the minimum wage high enough to do this. We also need full employment. Giving people extramoney to spend will tend to drive to full employment.
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whenever bad economic news is posted. You are slipping man.
k :
