Home Prices, Historical Data Chart – Glenn Beck explains the housing bubble, why prices must fall
Posted on February 14th, 2010 by admin
Like I’ve been telling my friends for years, it’s a bubble stupid, it can’t last for ever. If the average young couple has to save money for 30 years just to buy their first starter home, then does that not tell you that something is wrong? Things were out of whack, not everywhere, but apparently in enough areas to have caused this mess that we are now in. I know there is more to it than that, but that is the main reason for our crisis.
We should never have had a housing bubble. If you find the ones responsible for the bubble, then you will have found the ones that are responsible for all of our pain.
jbranstetter04
The housing bubble is bursting and the decline is accelerating!
Here are graphs of inflation-adjusted, historical real estate prices.
Recently, there has been a lot of discussion about the bursting of the U.S. housing bubble. Some economists claim housing prices are near a bottom, while others claim that the real estate bubble is the largest financial bubble in history and still has far to fall. This site aims to add to the housing bubble debate with inflation-adjusted graphs and spreadsheets showing that today’s real estate prices are quite abnormal, especially for many coastal metropolitan areas.
Notice that in the 25-year period from 1975 through 1999, real existing house prices stayed roughly within the range of $125,000 to $160,000, with an average during this period of $142,850. The United States median price was $180,100 as of the fourth quarter of 2008.
http://mysite.verizon.net/vzeqrguz/housingbubble/
Housing prices to free fall in 2008 – Merrill
According to a Merrill Lynch report, home prices will drop 15 percent this year, and declines will continue in 2009.
NEW YORK (CNNMoney.com) — The worst housing financial crisis in decades is only going to get worse, a Merrill Lynch report said Wednesday.
The investment bank forecasted a 15 percent drop in housing prices in 2008 and a further 10 percent drop in 2009, with even more depreciation likely in 2010.
By contrast, the National Association of Realtors (NAR) expects housing prices to remain flat in 2008. NAR did cut its home price estimate for the current quarter, however, to a 5.3 percent year-over-year decline, which represents the steepest drop in that price measure on record. But NAR sees an uptick in home prices in the last two quarters of 2008.
“Merrill Lynch’s figures are way too pessimistic, and they are unprecedented,” Lawrence Yun, the National Association of Realtors chief economist told CNNMoney.com. “There is so much variation in local housing markets, and we see stable price conditions for 2008.”
The current housing crisis and the depreciation in home prices have pummeled the economy, with businesses and consumers cutting back on spending, raising the specter of a recession. “Lower sales and higher inventory for sales are lowering the velocity of transactions,” said Fritz Siebel, Director of US Property Derivatives for Tradition Financial Services. “That cannot be a sign of good health for the economy.”
But for those who think that the worst is over, Merrill Lynch said that housing prices still remain comparatively high. The brokerage believes that home prices are still far above historical norms when compared to other measures such as rent or GDP. “By our calculations, it will take about a 20 to 30 percent decline in home prices to correct this imbalance,” said the report.
Merrill Lynch believes that housing starts will most likely slide another 30 percent by the end of 2008 – a historic low.
The report says that the inventory situation only continues to worsen, as homebuilders are now looking at more than a nine months’ supply. “The current supply/demand environment does not favor a swift recovery in the housing market, in our view,” according to the report.
Yun agrees that the reduction in housing starts will not bode well for the economy, especially in the homebuilding industry, but he believes that the reduction will soothe the housing market by slowing the glut in inventory. “The reduction in housing starts is not stabilizing the economy, but it will stabilize the market,” said Yun.
http://money.cnn.com/2008/01/23/real_estate/merrill_forecast/index.htm
Duration : 0:5:51
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February 14th, 2010 at 7:24 pm
he is right about …
he is right about one thing…FUCKIN’ deadbeats!
February 14th, 2010 at 7:24 pm
the republicans …
the republicans want a great depression.
February 14th, 2010 at 7:24 pm
so the bottom line …
so the bottom line is: they need to make the cities bigger to represent the people in their 20,s and 30’s who are looking for houses, the population hasnt gone up that much – but people are moving out of their parent’s houses which creates demand, and massive bubbles in the housing market through that demand. They all want to buy houses at the same time! You need to increase the size of the cities, make them bigger, more houses! More homes!
February 14th, 2010 at 7:24 pm
its not about …
its not about lending out more money or printing out more money from thin air, its not about another world war to get people out of an economic situation. You need to add more supply to the housing market to stabilize the economy. It’s about stabilizing the supply and demand of the most valuable asset to Americans and the most expensive piece of property that anybody owns: stabilizing the prices of homes. I’m not saying everything needs to be government owned, but you can manipulate supply.
February 14th, 2010 at 7:24 pm
Glen Beck makes a …
Glen Beck makes a living and pays for his million dollar home (or is it a trillion dollar home by now, depending on how far up the housing bubble has gotten already) through his radio and TV shows, he’s interesting however Obama is actually right. Houses go up and down because of supply and demand. There is a lot more demand than there is supply, if we act now and put professional money into the market by adding more houses (more supply) there will be less demand which will stabilize the prices.
February 14th, 2010 at 7:24 pm
Housing prices …
Housing prices going down are a good thing housing prices going up because of silly inflation forcing more debt that cannot be repayed all of which is inflation is absurd.
Secondy the housing market was horrible in the 30’s homes bought, quality of homes, and solvency of homes was virtually nonexistant.
February 14th, 2010 at 7:24 pm
The world war …
The world war produced no prosperity for anyone, consumer goods were non existant massive insane rationing and no savings…..what got us out of the the great depression was after world war 2 when socialism was rejected by the republicans
February 14th, 2010 at 7:24 pm
The real problem of …
The real problem of America is its central bank, greenspen and bernanke are the real evils. the FED is destroying america
February 14th, 2010 at 7:24 pm
NO it does not …
NO it does not sound good. America needs to stimulate “competition” as if prices are going to be lowered and sales higher. Not lower your home price to save the economy. Good neighborhoods never had to lower their price but were played out as fools because the majority of America HAD to lower their price and THEY want to make it look like it’s universal and not a few people dominating the money system. They don’t want to stimulate competition especially in health care
February 14th, 2010 at 7:24 pm
Since 1999 the …
Since 1999 the economy died. The chart should have went down at the point but there was a lot of phony stuff going on that caused it to only look like it’s going up. USA trained a bunch of monkeys to do a bad job flipping a home and a good job at jacking the price. The business district price/rent went up and never came down even as home prices did. Who wants to buy a home, cheap even, if the business district prices are too high? The recent increase in home prices is phony upon a surplus
February 14th, 2010 at 7:24 pm
FDR was a …
FDR was a terrible president, he was a theif, so is OBAMA, FDR caused ww2 by stealing from Japan over china, who will OBAMA stael from to start ww3 ???
February 14th, 2010 at 7:24 pm
Notice that the …
Notice that the chart was heading up into the realm of the never-before stratosphere by the early 2000s.
Just curious…was Glenn Beck decrying the foolish optimism of the Greenspan FED and Bush II administration as all measures of asset value and debt were climbing through the roof at steep inclines?
February 14th, 2010 at 7:24 pm
Economy will NEVER …
Economy will NEVER recover until the housing market does.
February 14th, 2010 at 7:24 pm
You anit kidding …
You anit kidding because we all better prepare for far worst, because they will get rid of the dollar, then any middle class good paying job, the elect think 20-30 thirty years ahead. this just apart of the plan
February 14th, 2010 at 7:24 pm
Obama is a disaster …
Obama is a disaster for America in so many ways. It will get much worse.
February 14th, 2010 at 7:24 pm
obama should rip …
obama should rip off riches not the middle classes to assist dead beat, being a middle class is so sad that after tax, you feel like you’ve been working hard but live the same life as who don’t, why are we even bother to work hard??
February 14th, 2010 at 7:24 pm
ron paul wants to …
ron paul wants to limit government
February 14th, 2010 at 7:24 pm
Who was President …
Who was President in 2006? Hmmmm