We've never had...

[nutmeg]

That means most markets are back to 2004 prices, or farther.
----------------------------

I constructed my own index for my county and came up with the same results (nice to see this confirmed). Looks like we lost on the home appreciation side of the equation. Historically, the homes appreciated about 4% a year. Home improvements and general repairs could easily wash out that 4% gain. Income tax write offs aren't much justification for home ownership in the near term. If banks require a larger down payment, you're buying a money pit. We've been had.

Boomers are looking to cash out (on the downside leg of a bottom), both in terms of the market and real estate, what a bummer. Middle class is getting f'ed.

 

[TraderZones]

Quote from krazykarl:

What a shitty chart. They say inflation adjusted, but not USD adjusted. It doesn't even mention how little today's dollar is worth. I hope no one paid for that thing....

Regards,

This is an amazingly uninformed opinion.

This chart is the US HOUSING MARKET. IT IS BASED ON THE USD.

This chart is INFLATION ADJUSTED. THUS IT REFLECTS THE CHANGE IN PRICE, WHICH INCLUDES THE CHANGE IN THE VALUE OF THE USD

Did you get your training out of a box of cereal?

Really???

 

[krazykarl]

Quote from TraderZones:

This is an amazingly uninformed opinion.

This chart is the US HOUSING MARKET. IT IS BASED ON THE USD.

This chart is INFLATION ADJUSTED. THUS IT REFLECTS THE CHANGE IN PRICE, WHICH INCLUDES THE CHANGE IN THE VALUE OF THE USD

Did you get your training out of a box of cereal?

Really???

Wow.... just wow....


1. More things affect the USD then just inflation which only is a part of the equation when you look for the derivative of a currency. Do you think that "inflation" includes everything that affects the value of money over time???? Seriously, do you? Inflation has to do with goods, not currency.

2. "Inflation adjusted" DOES NOT EQUAL "Interest Rate Adjusted" or "Constant Price Index used over the last 100 years Adjusted"


Seriously, do you have a degree and if so, did you have any calc? (no joke)



Regards,

 

[TraderZones]

Quote from krazykarl:

Wow.... just wow....


1. More things affect the USD then just inflation which only is a part of the equation when you look for the derivative of a currency. Do you think that "inflation" includes everything that affects the value of money over time???? Seriously, do you? Inflation has to do with goods, not currency.

2. "Inflation adjusted" DOES NOT EQUAL "Interest Rate Adjusted" or "Constant Price Index used over the last 100 years Adjusted"


Seriously, do you have a degree and if so, did you have any calc? (no joke)



Regards,

seriously, you need to seek treatment

 

[gnome]

One big, BIG thing "we've never had before" is CREDIT EXHAUSTION.

If that's really the case this time, we might still be in the 1st or 2nd inning of the mess.

 

[RhinoGG]

I love a cat fight, and this ones got legs.

TraderJones just got spanked, KrazyKarl with the point lead. I can hardly wait for the next installment of "ET bitch match".

 

[TraderZones]

Quote from RhinoGG:

I love a cat fight, and this ones got legs.

TraderJones just got spanked, KrazyKarl with the point lead. I can hardly wait for the next installment of "ET bitch match".

if you think that was a spanking, then you need some Prozac.

Karl (the Sandman) just threw a bunch of sand into the air, hoping to see which way the dust blows. But he is just making noise to pretend that he has illumination.

It is obvious he cannot grasp that the pertinent information is already reflected into the USD.

Everything in the USA is priced into the USD. All the inflation, the salaries, the problems, the expectations, the interest rates, etc. For example, the dollar falls due to our enormous debt obligations.

As to math, yes. Calc 1. Calc 2. And a host of master's comp sci math courses from Automota to Numerical Analysis, Robotics, AI, Electrical Engineering, DB/OS and other CS courses

The only thing that cannot be adjusted, is his ignorance.

Someone presented a very good chart. The dummy whined that it wasn't presented HIS way. Who the hell cares what HE wants? Where is HIS chart then?

Let us look at the Dummy's first comment ("What a shitty chart. They say inflation adjusted, but not USD adjusted. It doesn't even mention how little today's dollar is worth. I hope no one paid for that thing....")

what kind of Asshole doesn't realize that the homes are completely priced in USD??? And that the house values vary in relation to interest rates and the USD? There is little extra information needed, so his comment was just drivel.

And that was why matgallis (above) said this to him: Your statement is about as dumb as stating interest rates aren't included in the price of home for the index. You do realize they attempted to deflate the dollar using real values as opposed to nominal values? Hence, an index with a value (not dollar)range from 60-200...

When an asshole farts, I usually ignore it. But I will make an exception in both of your cases. Thanks to the IGNORE button, don't need to hear the flatulence of either of you anymore

 

[krazykarl]

Quote from TraderZones:

seriously, you need to seek treatment

Very strong 3-month-user post.

 

[Arnie]

Quote from PohPoh:

A prolonged period of falling real estate prices, as we have right now...

The Wealth Effect from rising RE prices was evident...
granted, the wealth was phony, and we only borrowed to consume, NOT to produce..

as the phony wealth from lax lending standards evaporates, at this rate, we are going to see the reverse happen..Negative Wealth Effect (if there is such a term)...

It's going to get ugly..much uglier..before it gets better..

I think Marketsurfer pointed out that these Bus Tours of foreclosures are just ramping up now...if that's not sign of further decline to come, I don't know what is..

What would really be scary was if there were no potential buyers. The fact they have to use a bus tells you that isn't the case. RE may be down over the past few years, but if you bought before 2005, chances are you have a good amount of equity. Well over 90% of ALL mortgages are still being paid on time. It's not the end of the world.

 

[S2007S]

Quote from Arnie:

What would really be scary was if there were no potential buyers. The fact they have to use a bus tells you that isn't the case. RE may be down over the past few years, but if you bought before 2005, chances are you have a good amount of equity. Well over 90% of ALL mortgages are still being paid on time. It's not the end of the world.

The turn around is now being delayed buy extreme prices in energy, I think if inflation was much more tame and energy prices were lets say 50% lower than they are today the housing industry might have found a bottom sometime in 2010-2011, I think because of high inflation, a weak dollar and unemployment rising housing will not turn around until 2013-2014 the earliest, this has many, many, many years to go, greed created what we see today. It would have been nice to see a nice gradual 100%+ increase in housing prices over a 20-30 year period, but greed created a 100% boom in housing prices in only 4-6 years. This is going to take a very long time to fix.