I’m sure we all knew this would happen about 4 years ago. I get so frustrated when all of the people “in the know” are so ignorant. Austrian Economics = Common Sense.
“HONG KONG (MarketWatch) – Merrill Lynch forecasts nationwide U.S. home prices could decline 25% to 30% over the next three years, as new supply and weak demand weigh on the market. “This sounds dire… but would only reverse part of the unprecedented 130% price surge from 2000 to 2006,” wrote economist David Rosenberg in a research note released Wednesday. Rosenberg added the S&P 500 may decline an additional 20% to 25% to breach the 1,100-point level if the market follows historical precedents at times when the U.S. economy is in recession. ”
I would love to see a full blown recession, as that would totally collapse the real estate bubble and bring home prices back down to there 1995 levels. A total collapse in the real estate market is PRECISELY what this country needs.
Here in Florida, since 1995 and until the recent downturn, home prices have at LEAST doubled in most areas, tripled in quite a few and in some locations have even quadroupled.
Tell me about it I live in Massachusetts were the housing market is awful, meaning homes cost way too much. Of course our over the top zoning laws (trust me they are a nightmare), union supported government building regulations, and various local property taxes certainly dont help. Overall I am saving up to buy a house as the prices inch lower and lower but I doubt it will be in this state.
”