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Housing Price Drop Could Be Worse Than The Great Depression
clusterstock.com — Home prices dropped 30% in the Great Depression. In our current housing bust, they've already dropped 20% (24% after adjusting for inflation), and the rate of decline is only now beginning to peak. It is highly likely, therefore, that the decline in US house prices this time around will be worse than it was in the Great Depression.
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- AmyVernon, on 09/06/2008, -0/+6There's a new round of option ARM mortgages that are going to be reset at higher rates starting next year; it's going to get worse.
- bixby1, on 09/06/2008, -0/+2Renters Rule!
- publiclurker, on 09/06/2008, -0/+1Make sure your landlord actually owns where you stay. There have been numerous cases where a renter comes home to an eviction notice due to lack of mortgage payments.
- GreyMalkin, on 09/06/2008, -4/+0Sounds like a bunch of rubbish. Home prices are now leveling out to where they should be. As long as you don't have any undesirable neighbors (and we all know what that means), your home value should level off and then increase.
- swordedge, on 09/06/2008, -0/+4I call it a value correction. Housing prices have been going up way too fast for better then two decades.
- argoff, on 09/06/2008, -0/+2Historically, average house prices were similar to an average annual salaries. However, this was before the federal reserve and fiat money were being pumped into housing markets like mad lunatics. Because houses were pumped up so bad, and because so many areas were over-constructed, the crash will likely go way below this mean - eg 50% of average annual pay. In some states like California with high property taxes is will be so bad that they will eventually be unable to give away houses for free.
- toetagger, on 09/06/2008, -0/+3Don't worry, John will put Sarah on it.
- brad3378, on 09/06/2008, -0/+1Leave it to the "Mavrick" to ***** things up worse.
- stonebear, on 09/06/2008, -0/+2Still quite a ways to go before housing costs meet up with wages that can pay for them again.
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