Mr. Market has decided to make housing much more affordable. Great news for prospective buyers who have good jobs.
Writes Capital Economics’ senior economist Paul Dales, “On the Case-Shiller measure, prices are now 33% below the 2006 peak and are back at a level last seen in the third quarter of 2002. This means that prices have now fallen by more than the 31% decline endured during the Great Depression.”
This is great news. Lower prices are better. Granted, these lower prices come with a multi-trillion dollar cost due to a corrupt ruling class. The scale of the intellectual and financial corruption that brought us to this point makes me worry about the future of the commonwealth. I see little sign our populace is going to make the corrupt ruling class act less corruptly. But at least there's an upside of surplus housing for those who can afford to make enough to buy one.
Time to buy yet? Depends on the market. Looking at home prices over the last couple of decades it seems like prices still have room to go down. The cities with the sharpest declines might be nearer their bottoms.
|Share |||By Randall Parker at 2011 June 06 08:04 PM Economics Housing|