House Prices Now Falling At Fastest Rate Since Lehman Collapse

www.marketwatch.com...

New data just out from Zillow, the real-estate information company, show house prices are falling at their fastest rate since the Lehman collapse.
Average home prices are down 8% from a year ago, 3% over the quarter, and are falling at about 1% every month, according to Zillow.
And the percentage of homeowners in negative-equity positions — with a home worth less than its mortgage — has rocketed to 28%, a new crisis high

What a foolish boondoggle those tax breaks for home buyers have turned out to be. The government spent an estimated $22 billion between 2008 and 2010 on tax breaks to prop up the housing market. All it achieved was a brief suckers’ rally that ended last summer.

And they said the recession back in 2009....

Does this mean another collapse is around the corner? How much will this affect the economy?

Dont forget unemployment just went up last month to.

reply to post by buni11687


Home prices aren't falling per-say, they are re-adjusting to reality.
For one thing most new homes, even the McMansions are worthless garbage, paper box castles. They are made with cheap wood for their frames and even cheaper dry wall.

So of course the value on those homes are going to bottom out(in reality they should all be torn down as a public safety issue).

Now look at pre-existing, solid homes(made of brick,concrete or stone), well the problem with them is that like the cardboard homes, real-estate agents lied and manipulated the price of Value of them. One thing people forget in a min/max society is that yes, you can occasionally buy something lower then what it's real value is. But if you REALLY want something chances are your going to be paying more then it really is worth.

Basically the real-estate market is returning to a more value oriented pricing. And no private entity or government entity should interfere with the reality check as that is assisting fraud. Home-owners who want to be greedy I have no sympathy for. They are no different then a used car salesperson that tries to get top dollar for a lemon.