Raymond Richman - Jesse Richman - Howard Richman
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Zillow Real Estate Research reports that home values are falling fast
A new study from Zillow Real Estate Research (No Respite from Housing Recession during the First Quarter) reports that house prices are falling at their fastest rate since 2008. Here is a selection:
Although the media are only just now figuring it out, we'd like to remind you, dear readers, that we told you last month in American Thinker that house prices were in free fall (House Prices in Free Fall). I'd also like to remind you that I predicted this free-fall in a blog entry dated December 9, 2008 (Foreclosures.com: House Prices will Roar Back in 2009). In American Thinker we noted:
Last week Fannie Mae asked the federal government for another $8.5 billion. In our May 1 American Thinker article about the Paul Ryan's House Republican's budget plan (House Republican Budget Plan would Benefit the Poor) we pointed out:
Ryan's plan would reduce the deficit by $4.4 trillion over ten years by repealing ObamaCare, substituting private health plans, and making block grants to the states for Medicaid. It also imposes hard spending caps on domestic spending. It ends government bailouts to Fannie Mae and Freddie Mac, which have already cost the U.S. taxpayer hundreds of billions of dollars (and, with house prices continuing to fall, will likely cost hundreds of billions more)....
And on April 26 on this blog (Obama, Bernanke and Congress losing war against supply and demand in the housing market), I explained why Congress is unable to stop these foolish subsidies to try to keep house prices high. I wrote:
So there you have it. In order to please lobbyists, Congress and the Obama administration will keep shoveling out taxpayer money in a doomed attempt to keep house prices from falling to their normal levels.
Comment by Jesse Richman, 5/11/2011:
Good post! One thing I'd add is that I stick by my basic guide for home purchasers. Pay a non-bubble price by adjusting a pre-bubble price for inflation. Of course, in some markets you may still take a loss for a time. But you should do okay in the long run with this strategy.
Journal of Economic Literature:
Atlantic Economic Journal: