Wednesday, Dec 09, 2009

Flippin' 'ell.

Bloomberg: U.S. Homeowners Lost $5.9 Trillion Since 2006 Peak

"U.S. homeowners have lost about $5.9 trillion in value since the housing market’s peak in March 2006 as mounting foreclosures and the recession weighed on prices... Almost half a trillion dollars was wiped out this year through November as housing headed for a third straight annual decline. New foreclosures and higher mortgage rates in 2010 may hinder a rebound"

Posted by rumble @ 05:55 PM (1310 views)
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8 Comments

1. mountain goat said...

Better keep printing, that's a big hole to fill.

Wednesday, December 9, 2009 06:18PM Report Comment
 

2. Puppee said...

how can they lost what they never really had ok i will admit some of them did lose actual cash but what percentage made money on their original purchase you have lost the money if you never had it to touch in the first place and the same thing applies in the u.k

Wednesday, December 9, 2009 06:22PM Report Comment
 

3. tyrellcorporation said...

Where's our fricken' HPC though guys?!? Seriously miffed!

After the biggest financial meltdown for 70 years I've had to sit and watch Exeter house prices rise 15% this year!

Wednesday, December 9, 2009 08:23PM Report Comment
 

4. drewster said...

TC - It's coming. The downturn has only been forestalled by the government's incredible borrowing binge (see graph below). The ratings agencies have openly stated that they're waiting to see what the next government does after next May's elections. Hundreds of thousands of public-sector jobs (and jobs indirectly dependent on the public sector) will have to go. Many of these are well-paid jobs, so their loss will be felt particularly hard.

UK Debt Management Office - Gilt Market: Gross and Net Issuance with Projections

(Obviously this doesn't take into account the hidden liabilities: PFI, pensions, etc.)

Wednesday, December 9, 2009 08:43PM Report Comment
 

5. drewster said...

Can't paste the graph - see link for pretty graph of huge govt debt: DMO: Gilt Market Gross & Net Issuance with Projections

Wednesday, December 9, 2009 08:45PM Report Comment
 

6. estrader said...

TC, I can't help agree with drewster. 2009 was a year of (unprecedented?) government stimulus, the US wants to keep it going through 2010 but I am starting to think the money is running out and the problems haven't been fixed at all. All that money has been spent delaying not fixing. (IMO) If the property decline doesn't happen in 2010 then I will concede it won't ever happen.

Here is something I posted in another thread which supports my theory, and I suppose that of most here, 2010 will be the year.

--------------------
Something very noticeable is happening around my area which may vindicate the bubble graph. I figure that the last HPI report may have been the final part of the 'return to normal' phase. If the next HPI report does not show a sizeable drop in prices then I will declare it utterly untrustworthy due to figure manipulation. Why I hear you ask?

I sold my 1 bedroom GF converted flat in October. Two identical properties were listed on Rightmove at around the same asking price at the same time and I have checked the progress almost daily to see if I got a good deal and the timing right.

Property 1 was listed well below mine @£89,950 and tonight I see it listed @£84,950. I thought I was seeing things incorrectly until I saw property 2!

Property 2 was listed originally @ £102,950
Not long after I sold, Property 2 was re-listed @£99,950
Now it is listed @Offers in Excess of £95,000

Wednesday, December 9, 2009 09:03PM Report Comment
 

7. drewster said...

estrader,

The figures in my area look clean. Asking prices seem to be up a fair bit compared to 2006 or so. I haven't been keeping track closely, but there certainly aren't any big falls in asking prices. Whether that translates to actual sales is another matter entirely. 0.5% interest rates mean there are very few forced sellers in the market, so asking prices stay high and transaction levels are low.

Wednesday, December 9, 2009 11:09PM Report Comment
 

8. Nutjob said...

want to know how much prices are being lowered by... they are being lowered... you just have to know where to look and how to look

do this, get firefox and then get the property bee firefox extension and then go to rightmove site and do a search. property bee keeps track of rightmove property prices and it will show you exactly when and by how much things changed. I've just looked at virginia water where house prices are in the multi million buck range and those guys are dropping them and dropping them.

friggin awesome tool. here's the link: http://www.property-bee.com/

Thursday, December 10, 2009 04:41AM Report Comment
 

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