We’re not at the bottom of the housing crisis:
If you thought home prices were bottoming out, you may be wrong. They’re expected to head a lot lower.
Home values are predicted to drop in 342 out of 381 markets during the next year, according to a new forecast of real estate prices.
Overall, the national median home price is predicted to drop 11.3% by June 30, 2010, according to Fiserv, a financial information and analysis firm. For the following year, the firm anticipates some stabilization with prices rising 3.6%.
We can hope and pray for that 3.6% increase in 2011 – but if my house drops by 11.3% in 2010 and gains 3.6% in 2011, it still works out to about $15,000.00 drop between now and December of 2011 in the value of my house…on top of the approximately $210,000.00 drop since 2006. Not a pretty picture, and I’m just one of millions. The really bad news: Las Vegas will actually do worse than most areas, and so I can probably expect much more than an 11.3% drop next year, and I wouldn’t bet a nickel on a 2011 increase out here.
This is why the stories of a strengthening economy are so much moonshine – housing prices are dropping, wages are dropping, unemployment is rising…with this sour brew of economic collapse, the bankers and their buddy, Obama, are telling use we’re going to get a nice, cold beer out of it. Its just not possible – all we can hope to do is ameliorate the suffering and, if we’re smart, lay down the foundation of a reborn economy by encouraging savings, providing sound money and balancing the federal budget (with a preference for lower taxes, but that might not be possible for a few years – certainly, however, any tax increase will be the work of an insane person).
Hard work and adversity have never daunted Americans and they won’t now – the only thing which can stop us from fixing this is government attempts to fix it.
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