Housing Crash Is Getting Worse, Not Better

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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.

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0 responses to “Housing Crash Is Getting Worse, Not Better

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

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

  3. 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 over the past 12 months. The metros hit hardest were geographically diverse with Ocala, FL, Pueblo, CO, Detroit and Atlanta experiencing the sharpest yearly declines.

  4. 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.

  5. 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 Laden has been eliminated and now our worries are over. Never mind all the criminals in the White House! Joseph Goebbels would be proud of their efforts thus far. But we all know what happened to Joey and his fun loving bunch of Nazis.
    …”“All propaganda has to be popular and has to accommodate itself to the comprehension of the least intelligent of those whom it seeks to reach.”~Adolf Hitler
    “Any society that would give up a little liberty to gain a little security will deserve neither and lose both.” ~Ben Franklin

  6. 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.

  7. There are entire neighborhoods in Albuquerque that are virtually vacant.
    I know we have not seen the bottom of this yet!!!!!!!!!!

  8. 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 lies in little matters but would be ashamed to resort to large-scale falsehoods. It would never come into their heads to fabricate colossal untruths, and they would not believe that others could have the impudence to distort the truth so infamously. Even though the facts which prove this to be so may be brought clearly to their minds, they will still doubt and waver and will continue to think that there may be some other explanation. For the grossly impudent lie always leaves traces behind it, even after it has been nailed down, a fact which is known to all expert liars in this world and to all who conspire together in the art of lying”

  9. 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.

    • Nice job, the aptly self-named Philistine. You can’t answer my question, so you turn abusive, hurling out F-bombs, which is against this blog’s stated policy, which means you’re rude in addition to being pointless. Bye!

    • 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?

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  11. 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.


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