Housing Crash Is Getting Worse, Not Better

Homes under water, the new American Gothic


“Every day the economy is getting better and better.”
That’s what the Obama administration would have you think. But the reality is very different.
The US housing market is getting worse, not better.
That corrupt government-subsidized institution Fannie Mae today reported a net loss of $6.5 billion in the first quarter of 2011, and is requesting $8.5 billion of funds from the US Treasury to eliminate the company’s net worth deficit.
New data released by Zillow, the real-estate information company, show house prices are falling at their fastest rate since the burst of the real estate bubble.
Brett Arends of MarketWatch reports today, May 9, 2011:

  • Average home prices are down 8% from a year ago, 3% over the quarter, and are falling at about 1% every month.
  • Prices fell in all but four U.S. metro areas.
  • The percentage of homeowners in negative-equity positions — with a home worth less than its mortgage — has rocketed to 28%, numbering 16.3 million families, a new crisis high. That means more than 1 of every 4 homes in America are under water! For many, their homes — for which they are hemorrhaging cash on monthly payments — may never be worth as much as their mortgage.
  • Zillow predicts prices will fall about 8% this year and says it no longer expects the market to bottom before 2012.

Mark Calabria, economist at the conservative Cato Institute, laments the $22 billion tax breaks for home buyers between 2008 and 2010 as “a giant waste of money” — a brief suckers’ rally that ended last summer.  “None of these things really turned the housing market around. They just put off the adjustment for awhile.”

Arends points out that falling real-estate prices mean spiraling hidden losses throughout the economy, from banks to homeowners. He concludes: “Recovery? What recovery? This looks a bit like a depression to me.”
Read the rest of Arends’ article HERE.
~Eowyn

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Judy
Guest

So explain to me again how Fannie Mae made #5 on Fortune 500 list?

Dave
Editor
Dave

Judy,
Because Bawney Fwank is rather skilled at, ahh, er, hmm.
Well, you know.
-Dave

Judy
Guest

That explains it, being too much of a lady myself to go there…
Thanks for the laugh, Dave!

DCG
Guest
DCG

Heard on the news today that Seattle are home values have gone down to ’04 prices…gotta love that hopeandchange, NOT!

lowtechgrannie lowtechgrannie
Member
lowtechgrannie lowtechgrannie

This from Zillow: Home values fell three percent in the first quarter of this year, marking a pace of decline not seen since 2008 when the housing recession was at its worst. Home values fell one percent between February and March and 8.2 percent from March 2010. The cumulative decline in home values since the market peak is now 29.5 percent (see Figures 1 and 2). There was little escaping the housing downturn in Q1 2011. With only one metro showing positive year-over-year change (Honolulu MSA), and one remaining flat (Pittsburgh MSA), the vast majority of U.S. markets logged declines… Read more »

pdaddy
Guest
pdaddy

Duh! Anyone who still believes there is a “recovery” or ever was one needs to have their head examined. And don’t even get me started on the Bureau of Lying Statistics or The Ben Bernanke ’cause this whole thing is corrupt; has been for decades now. Time to wakie wakie from our naps and put our bankies down and start to see reality for what it is folks ’cause it’s not going to get any easier from here on out.

Lynn
Guest
Lynn

Thing is, pdaddy, the American dullard will never “wakie wakie” as long as they have mainstream news bimbos looking at them through satan’s flashing eye (tv) and telling them the latest gov’mnt propaganda. No, they won’t even “wakie wakie” when the proverbial s#&* hits the fan. The only thing that will make them “wakie wakie” is when the s#&* hits them right smack dab in the FACE. And it will…..very soon. But right now, it’s essential for the ruling elite to keep the entranced masses convinced that their lies are really the truth. And that some “boogie man” named bin… Read more »

Jeannon Kralj
Guest
Jeannon Kralj

Even though home values have been going down, do not expect to see a reduction in the appraised value of your home for local property tax purposes. For some strange unknown reason, our valuations keep going up.

Sheila
Guest

There are entire neighborhoods in Albuquerque that are virtually vacant.
I know we have not seen the bottom of this yet!!!!!!!!!!
Peace
Sheila
http://www.placeofrefuge2012.com

Philistine
Guest
Philistine

While we’re quoting Hitler, let’s set this straight. Most people get this concept totally wrong, and it totally applies here: [on ‘the big lie’] “All this was inspired by the principle–which is quite true within itself–that in the big lie there is always a certain force of credibility; because the broad masses of a nation are always more easily corrupted in the deeper strata of their emotional nature than consciously or voluntarily; and thus in the primitive simplicity of their minds they more readily fall victims to the big lie than the small lie, since they themselves often tell small… Read more »

Philistine
Guest
Philistine

um, LOL u r s0 kewl.
Sorry, I had no idea this was a facebook forum for 13 year olds.
If the article is about how the PTB are lying to us… oh never mind. Fucking moron.

Dave
Editor
Dave

Funny you accuse us here of being 13 year olds, yet your writing style suggests you are very near the same age.
Ever heard of paragraphs?
Or do they no-longer teach those in government school out of fear of offending the illiterate children of illiterate government dependents?
-Dave

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Matt
Guest

this started out as a forum for the housing market and took a turn somewhere. I don’t think the American people are naive as a group, but they re largely being taught and led by their church to wait and let the Lord have the last word. Most of them are not planning to be here for the coming tribulation, so whatever takes place with the economy is a moot point.