The January 2009 numbers for Case-Shiller were released today. I updated my monthly graph which includes the Chicago Mercantile Exchange futures data for the index.
As shown above the price of a home that was valued at $600,000 at the peak of the bubble is now down to $341,613 (nearly $16,000 less than last month).
More interesting is that according to the futures it will drop below $300,000 by September (>50%) and keep falling through the end of the year.
For comparison purposes, here is last month's graph:
Is there anyway you could overlay these two graphs?
ReplyDeleteawesome. just started a well paying job a few months ago. should be able to afford a house soon
ReplyDeleteawsome. just lost well paying job 4 months ago and running into foreclosure. I couldn't last more than 4 months on a modest house I paid 600K just 18 months ago.
ReplyDeleteawsome. The way interest rate is going, housing price will go up 20% a year soon. Buy before priced out!
ReplyDeleteI plan to become a real estate investor on state unemployment insurance check.
lol yeah buy sucker buy ! 20 - 50 % drop in the next two or three years ! guaranteed!!!! unless ur from the NAR WHO PUBLISH NOTHING BUT LIES !!!!!!!!!!!!!!!!
ReplyDelete6 Flags Magic Mountain Value Ride!
ReplyDeleteI love it=1165% returns=yeeeee Haaaa!
Buy like a PIG when the market hits bottom and sell like a PANICKED Auctioneer WHEN the market hits the top.
cool work. Thanks.
ReplyDelete
ReplyDeleteBuy like a PIG when the market hits bottom and sell like a PANICKED Auctioneer WHEN the market hits the top.
In other words, buy when the market is about to go up and sell when it's about to go down. Brilliant. Why didn't I think of that.
One bank in the SF/BAy Area is lending mortgage money at 5.O% APR
ReplyDeletewith little or "no closing cost" to
qualified (credit check reaquired) buyers. They advertise at 5.25% but you may qualify for 5.00% (no points).If you know your credit is
excellent and have income to cover
the monthly cost ASK for the 5% loan. The proertu must also qualify for the amount of the loan.
Sorry no 100% "leverage" financing.
The graph up to now shows no reason why it should suddenly level out. With a collapsing job market, and therefore collapsing household incomes, the law of supply and demand dictates that the prices will continue to fall. This market CAN NOT turn around until people can afford to borrow the money to buy homes, that can only happen when prices fall to about three times household income. Average household income in CA is only around $50k.
ReplyDeleteit is all over. i said two years ago that there would be a nationwide decline of forty percent. i was way too optimistic. i now predict a nationwide decline of about 75% or maybe a little less. most people can only afford a thousand a month mortgage which would include(INCLUDE) property taxes. and most people do not have 20% DOWN ON A HOUSE PRICED AT $150,000. HOW MANY PEOPLE HAVE THIRTY GRAND SITTING IN THEIR CHECKING ACCOUNTS. SO I SAY A SEVENTY FIVE PERCENT DROP NATIONWIDE AS AN AVERAGE. IT IS ALL OVER FOLKS, IT IS ALL OVER.
ReplyDeletePrices will fully recover as soon as full employment occurs and real wages quadruple due to the power of positive thinking.
ReplyDeletepositive thinkin.. aka dream world
ReplyDeleteIs that "The Secret"?
ReplyDeleteCrazy chinese and vietnamese comunists buy houses in San jose, sunnyvale, milpitas, fremont etc. you name it. They pay cash of laundry money for the houses.
ReplyDeleteUSA is the source of laundry money to be rich nation.
praise the lord
ReplyDelete