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Home prices fall to 2002 levels

NEW YORK (CNNMoney) -- The housing market started the new year with a thud. Home prices dropped for the fifth consecutive month in January, reaching their lowest point since the end of 2002.

http://money.cnn.com/2012/03/27/real_estate/home-prices/inde...



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I ain't clickin it

Eff CNN. They are just trying to increase their web traffic since they're FAILING because of what they've tried to turn news into. http://www.dailypaul.com//223483/wait-did-cnn-just-lose-half...

That's what they get for not treating Dr. Paul with the respect he deserved! I won't read or watch them again.

(Nothing against the Ronulan who posted this article...thanks for being part of DP :)

Holy moly

This is THE PERFECT TIME to buy a house. First time home buyers should take advantage of this while they still can.

No where in United States

No where in United States should a home cost more then 25k. PERIOD

If you'd used the $25K to buy gold in the 1970s at the nominal

price of $35/oz, you'd have over $1M at today's prices to buy that house.

Gee, if they would only

Gee, if they would only continue on down to 1975 prices I might be able to move to a better neighborhood.

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I expect prices to hit a

I expect prices to hit a bottom near the 1995-1999 levels.

There's a lot of downward pressure on housing prices:

1. Massive number of foreclosures that were stalled will be hitting the market.

2. Gov is still propping up the market with very low interest rates. I have a friend whose realtor or broker is helping her with some sort of refinancing that will get her a 2-3% rate. If that's what it takes to keep the housing market where it is, then what happens when those rates go up even by just a little bit?

3. Neither unemployment nor the economy in general are improving in a meaningful way.

4. The boomer generation is retiring & downsizing. The youth either have no jobs, are underemployed or are saddled with heavy student loan debt, leaving them less able (as compared to previous generations) to take on the consumption that the boomers are backing away from.

Inflation might be the only thing that brings these homes back up in regards to price but not necessarily value. With the Fed buying 61% of our own debt that was issued last year, worse inflation might not be all that far off.

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I Agree, Now if Ben raise the

I Agree, Now if Ben raise the interest rate home will drop below 1990 prices. I think Ben is waiting for all this bonds to expire or collapse before he raise the interest.

My guess is that interest

My guess is that interest rates will be moved higher as soon as or shortly after inflation begins to have a significant impact on housing.

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They already have

The house across the street from me is for sale at pretty much what it cost when it was built new in 1995. The houses in my neighborhood have dropped in value about 50% from what they were worth 5 years ago.

Sucks ass.

Whether or not it sucks is

Whether or not it sucks is surely just a matter of perspective. From an owners perspective it sucks to have such a big loss. But these low prices probably look great from the perspective of potential buyers. Back in 2005/2006 all that was completely reversed... sucked for buyers but great for owners/sellers.

What's sad is that this market volatility is all thanks to the Fed & gov manipulating rates and the flow of money into the housing market. We might actually have some stability without all their manipulations.

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depending

the various articles on the net, we're either approaching the end of falling prices, or they're expected to continue falling.

Couple of examples:

http://www.usatoday.com/money/economy/housing/story/2012-03-...

http://abcnews.go.com/Business/housing-crash-slows-cities-bo...

Depending on who wins this presidency, we'll see how soon or if the market recovers.

Silky

Smooth

Michael Nystrom's fists can punch through FUD.

Preppers Rule!

I'm a realtor in the Sierra Nevada foothills, 2 out of 5 Buyers I talk to are Preppers, looking for a cheap houses with some land. 1 out of 10 are "Remnant".
BTW my Ron Paul bumper sticker has turned into plenty of business in the last 3 years. Don't be afraid or hide your light under a bushel, you can light the way back to Liberty.
Peace out.

reedr3v's picture

bump for Preppers

.

We just ratified and are closing in about a month.

We paid very close attention to the information from Inflation.us and decided to jump on this house in particular. It's on almost an acre (had been farm land), has two heat sources (oil and electric), and cost $75K! It was $122K less than a year ago.

We thank God for having made this one known to us and for having kept our hands tied when we -thought- we were ready to buy.

When we debated buying this house, I said, "Believe in land like you believe in silver. This small house in the city has a lot more land than anything else in the city. I think it even has fruit trees, and it even has a chicken coop already." It was $100K. We offered $75K and it got accepted immediately. Then, we heard about QE3 and a possible rebound of the housing bubble. What timing!

Michael Nystrom's fists can punch through FUD.

QE3 won't ignite housing

QE3 won't ignite housing again.

*nods*

I fully agree. I just don't think it will fall much further in dollar terms during QE3. People will be desperate, but we're all already broke, so I think QE3 will do a lot more price inflation and less bubble-forming. In other words, the nails in the dollar's coffin are getting longer.

I'm excited to find that this lot was previously used for small-scale farming. Boy, I have a LOT of studying to do. Grow corn? Apples? Beans? I have no clue at the moment. It's prepping, to be sure, but I'd love to know what the next step will be.

Michael Nystrom's fists can punch through FUD.

Congratulations!

I pray you be much blessed and well fed....now get to those farming books!

" In Thee O Lord do I put my trust " ~ Psalm 31:1~

True

But in Northern CA were seeing people buying with cash and paying forward the property taxes a couple of years. Smart rich Silicon Valley types. I'm telling ya RP is catching on in the People's Republic of CA.

I close on my brand new dream

I close on my brand new dream house in 4 hours!! I had to scramble to registar in my new county and visit GOP HQ to get my delegate app filed in time. But today I will have a new house and with any luck, I will get to Ft. Worth for the state convention and vote for the only man deserving of POTUS!!

"Any fool can criticize, condemn and complain and most fools do." -Benjamin Franklin

Little Elm, Tx

Farm land has double digit increases

while residential and most other real estate crashes, has that ever happened before?

http://www.sj-r.com/top-stories/x394118844/Farmland-prices-s...

Not sure, but there is a lot

Not sure, but there is a lot of pressure on the worldwide food supply which might be influencing this.

I read an investment article/analysis a few years ago that described how people around the world basically want the lifestyle that we have. The youth are moving from villages to big cities in large numbers. All these people no longer produce their own food but consume from the worldwide supply markets. Over the past decade or more the worldwide food supply reserves have decreased while the number of people moving from villages to cities has increased.

UG99, the wheat stem rust virus discovered in Uganda in 1999, has been spreading since and there still has not been a cure or a resistant strain of wheat found. Many experts have stated that it's not a matter of if but when UG99 spores make it to the U.S.

Recently I read about some issue with 7+ million bats having died to some kind of virus. Not sure of the details, but if there's a big epidemic that kills a significant portion of the bat population (in the U.S. or the world) we might see devastating consequences on the food supply from insects which bats usually keep in check.

There also have been issues with farmers getting the money to buy necessary fertilizers for their farms, causing issues with production.

Another issue is the growing worldwide population and the necessity to squeeze more production out of farm land or to farm more land.

Topsoil, I've read, has not been adequately replenished over the years which might also cause issues.

I guess one other thing to consider is that we are getting closer and closer to a just-in-time system with food production, meaning lower to no reserves and only one natural disaster away from food shortages.

All that, in my opinion, means whatever food can be produced on farms might end up being in very high demand and thus having a very high value. That, in turn, causes farmland prices to increase by those who are investing in this expected future and probably also those who simply want to buy small plots of farmland for their own personal food supply.

One last thing, I seem to remember Jim Rogers stating a year or two ago that if wall street types want to maintain their standard of living they will need to learn how to drive tractors in the near future....

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It makes one wonder just how frail the worlds food supply is

Thanks for the reply

HARP (Home Affordable Refinance Program)

and obama's "HARP" program is junk and only benefits the banks. You have to jump through hoops to get it, plus they charge you extra money to do it (as if you haven't already wasted enough) and don't give you the best interest rates without buying it down. Not to mention they make you escrow ridiculous different insurance policies that you don't want or need (to protect the banks). How about we help the responsible middle class people that got screwed by the bust by paying 5 times as much as something's value has dropped insanely at no fault to them, "unfortunately" they can "afford" their payments because they were responsible. Yet, we bailout the people who caused the crash instead.

$174,000 in 2007, $39,000 in 2012

"Home prices have fallen a whopping 34.4% from the peak set in July 2006."
They still lie about the crash. 78% decrease in the sale price of my house. Of course, it was not offered to me at that price. It was stolen, with no one ever showing they had a contract, title, deed, any paperwork at all. Indeed, in spite of a stack of papers showing they had violated contract terms over and over.

Love or fear? Choose again with every breath.

Sounds like you might have a

Sounds like you might have a valid claim if you can prove your house was foreclosed on fraudulently.

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