Thursday, Jul 01, 2010
US 2nd leg down
Business Insider: House Prices Are Still Too High And They're Going To Tank -- Ritholtz
"We're on our way to a second leg down in housing price...because house prices are still too high. Even after a plunge of more than 30% from the 2007 peak to the 2009 trough, house prices still did not fall to their long-term "fair value" level relative to incomes and rents of the past century. Over the next year or so, Ritholtz expects prices will resume their fall and drop at least another 10% before bottoming."
Posted by rumble @ 09:48 AM (974 views) Add Comment
8 Comments
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1. p. doff said...
Can't say I'd noticed a 'plunge of more than 30% from the 2007 peak to the 2009 trough' round this area.
2. p. doff said...
Oh, I see. Wonder if we will follow the us model.
3. Crunchy said...
2. p. doff said...Oh, I see. Wonder if we will follow the us model.
We don't have Motor cities or accidental oil slicks waiting for Hurricanes p. doff.
4. inbreda said...
Business Insider?
5-years-out-of-dater more like.
5. clockslinger said...
This article relates to America, doesn't it? How relevant is it to UK?
6. rumble said...
Glad you guys are loving this winner. The relevance routine? I thought we'd given up on that. Well I for one enjoy international comparisons, especially with large economies. But you don't have to read it, or reply to it, you can even report it. See, you're powerful like Harry Potter.
"to flatfoot"
7. markj69 str05 said...
I too like to see international comparisons, and the old saying if the US catches a cold, etc... must have something going for it.
'house prices still did not fall to their long-term "fair value" level ' - Not sure what 'fair value' actually means, however, one look at the 'Real house price' graph (Home page), indicates that post peak crashes tend to dip below the trend line. Possibly indicating an under-shoot of 'normal' or long term avg' prices. And there hasn't been any sign of an under-shoot yet. YET.
Perhaps this 'flat-lining' of prices is what GB meant by 'no more boom or bust'! No more bust anyway!
8. Jrhartley said...
Over the next year or so, Ritholtz expects prices will resume their fall and drop at least another 10% before bottoming."
10% eh, wow, that's really tanking some isn't it? Do the editors of these financial papers actually bother reading the stuff they put online?