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IScreamSundays Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-17-11 08:09 AM
Original message
Housing Market Plunge Passes Depression's
Source: CBS

CBS) NEW YORK -- Home prices fell for the 53rd straight month in November, taking the decline past that of the Great Depression for the first time in the prolonged housing slump, according to Zillow.com.

Prices have fallen 26 percent since their peak in 2006, exceeding the 25.9 percent drop registered in the five years between 1928 and 1933, the housing data company reports.

The word comes on the heels of figures showing banks repossessed more than one million homes in the U.S. last year -- and they're expected to take back even more this year.

On "The Early Show" Thursday, Jason Cochran, Editor-at-Large at AOL's WalletPop.com, discuss what it all means for buyers, sellers, mortgage-seekers, people mulling refinancing or doing home improvements, and others:

Read more: http://www.cbsnews.com/stories/2011/01/13/earlyshow/main7243135.shtml
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ixion Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-17-11 08:33 AM
Response to Original message
1. LOL.. so we're still not being honest and calling it a 'slump'... green shoots!
Until we're honest about the mess we're in, it's not going to start getting better. In fact, it's going to get worse the longer we pretend it doesn't exist.
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no_hypocrisy Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-17-11 08:41 AM
Response to Original message
2. Are the two eras comparable? The Depression wasn't preceded by a bubble
Edited on Mon Jan-17-11 08:41 AM by no_hypocrisy
in real estate, but rather the value of stocks. And without the bubble, wouldn't that make the drop of home prices during the Depression more significant?

Just askin' . . .
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TheEuclideanOne Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-17-11 09:02 AM
Response to Reply #2
3. Sorry, not seeing your point.
Please elaborate.
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Downwinder Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-17-11 09:11 AM
Response to Reply #2
4. Both involved credit bubbles.
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pottersvilleusa Donating Member (54 posts) Send PM | Profile | Ignore Mon Jan-17-11 10:24 PM
Response to Reply #4
17. Yes, both involve cycles of loaning money
Then repossessing. And both involve planning to do just that.
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Trajan Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-17-11 09:13 AM
Response to Reply #2
5. Does it really matter ?
if a price drop is preceded by a bubble ? .... Is that all that matters ?

The decrease in valuation is what is being measured here .... not the size of the increases that may or may not have existed before it ...
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No Elephants Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-17-11 09:26 AM
Response to Reply #2
6. Are you sure there was no real estate bubble in tihe Twenties?
This mess was preceded by a stock bubble AND a real estate bubble. The tiwo were noti unrelatied--and I don't mean only by mortgage derivatives. It's kind of "rising tide lifts all prices."
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Javaman Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-17-11 10:27 AM
Response to Reply #6
14. Remember the movie "coconuts" by the Marx Brothers?
it was about the real estate bubble in florida just prior to the depression.

They were selling swamp land in florida as if it were a paradise. So many people lost their shirts down there.
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fascisthunter Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-17-11 09:38 AM
Response to Reply #2
9. um... there was a bubble before the great depression
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ixion Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-17-11 09:52 AM
Response to Reply #2
10. well, the value of stocks have been over-inflated, too... made worse by speculation in housing
Edited on Mon Jan-17-11 09:53 AM by ixion
which is why this is closer to the 1890's depression (which was worse that the so-called 'Great' Depression).

Still, it's a depression nonetheless, no matter what the root cause, and there are comparisons to be made, to be sure.

To your point: There actually WAS real estate bubble prior to the GD.
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Javaman Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-17-11 10:25 AM
Response to Reply #2
13. Do you know what buying on margin means?
do you know that it was effectively created by the rich?

do you know that there was basically a margin bubble?

Come on, read the history, it's all there.
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SoCalDem Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-17-11 09:30 AM
Response to Original message
7. the lead-up to 2006 was irrational exuberance, remember?
If you look at long-term housing appreciation, you will see a gradual incline and then a wild upward swing.. Until prices fall back to what would have been a normal uptick, we are still in for more devaluation

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Rockholm Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-17-11 09:31 AM
Response to Original message
8. Nice to see the doom and gloomers are STILL going after Real Estate.
A blanket doom and gloom is fine for Florida, Califormia, Arizona, Nevada, Ohio, etc. Every real estate amrket is different. Believe it or not, there are places where real estate is doing fine.
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Javaman Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-17-11 10:32 AM
Response to Reply #8
16. 53 months in decline.
If those other markets are doing just great, why then do we have 53 months of continued decline?

Because those other markets just aren't doing well enough to offset the decline.

It's the sum total. If it were done regionally, that would be a different story, but last time I checked, we live in a nation. And as such good and bad totals effect all of us.

So while other markets maybe doing well, the over all outlook still stinks.
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girl gone mad Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jan-18-11 05:39 AM
Response to Reply #8
19. "It's different here."
Hmmm... seems like I've heard that one before.
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Rockholm Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jan-18-11 07:17 AM
Response to Reply #19
20. Well, it certainly is.
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wishlist Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-17-11 10:15 AM
Response to Original message
11. This time more rampant real estate speculation and over development
Home prices had not skyrocketed as much before the Great Depression. The continuing price drops aren't surprising because incomes kept falling while many sellers kept trying to get unrealistic inflated prices for many months after this crash. I know several people with empty second homes on the market for years who only just recently faced reality and reduced their asking prices by over 30% to cut their losses. In 2009 I inherited and quickly sold our old family home (in another state) for 40% below its appraised value rather than holding out for a higher price while paying taxes and upkeep indefinitely. It was a difficult decision but I am glad to have sold it to a young family who are enjoying and preserving the old homeplace.
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lonestarnot Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-17-11 10:20 AM
Response to Original message
12. Part of it due to out right thievery by the fucking banks. They want it, they just take it.
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joshcryer Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-17-11 10:31 AM
Response to Original message
15. Good for me. :D
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Nye Bevan Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jan-18-11 12:51 AM
Response to Original message
18. Good. Housing prices rose to ridiculously stupid levels
Edited on Tue Jan-18-11 12:51 AM by Nye Bevan
and a severe correction was necessary.
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mmonk Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jan-18-11 09:10 AM
Response to Reply #18
21. Bad in that prolonged housing slumps keeps job growth down
and household wealth more tenuous. Usually building lifts the country out of recessions. More needs to be done to stem further worth decline through foreclosure. The government should help the people stay in their homes by reworking the debt.
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edhopper Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jan-18-11 09:22 AM
Response to Original message
22. If you look at the basic metrics
for Real estate values, the market in the New York area still has a long way down to go.
Rent to own, price to income and historic values are still very high.
An example, in queens the price per sq ft is around $300, down from a high of $400. But in 2000 (before the bubble) it was around $50. With stagnant wages, this is still overly inflated.
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mdmc Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Jan-21-11 08:39 PM
Response to Original message
23. ..
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