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It's official: The housing crisis that began in 2006 and has recently entered a double dip is now worse than the Great Depression.
Prices have fallen some 33 percent since the market began its collapse, greater than the 31 percent fall that began in the late 1920s and culminated in the early 1930s, according to Case-Shiller data.
The news comes as the Federal Reserve considers whether the economy has regained enough strength to stand on its own and as unemployment remains at a still-elevated 9.1 percent, throwing into question whether the recovery is real.
"The sharp fall in house prices in the first quarter provided further confirmation that this housing crash has been larger and faster than the one during the Great Depression," Paul Dales, senior economist at Capital Economics in Toronto, wrote in research for clients.
Chinese developers’ outlook was cut to “negative” from “stable” by Standard & Poor’s, which said tighter credit and further government curbs may lead to rating downgrades in the next year.
Property sales may start to slow as the government’s policy “starts to bite,” leading to price cuts that may drive home prices 10 percent lower in the next 12 months, the credit rating company said. Hong Kong’s real estate market faces the risk of a “sharp correction,” S&P also said in the statement today.
AUSTRALIA'S super rich aren't immune to the property downtown with real estate performance in battler suburbs outstripping the country's wealthiest postcodes.
The property divide between the blue-ribbon belt and struggle street has narrowed significantly as interest rates and homebuyer jitters continue to erode the top end of the market.
Median house prices in prestigious suburbs fell up to 43 per cent since peaking in 2008, according to RP Data figures out today.
Property experts predict that the performance slide in salubrious enclaves could continue for at least three years, as luxury home buyers remain sidelined in what is one of the most overpriced real estate sectors of the world.
And while price slashing may attract bargain hunters, pundits warn that the premium home market is riskier than ever due to the soaring Aussie dollar and the volatile share market.
Originally posted by surrealist
Meanwhile, property developments in Australia aren't looking too peachy either. The difference here is though, that Australia has room to influence property prices with monetary policy and lower interest rates - which stand at some of the highest in the developed world. But then, Glenn Stevens has just announced Australia needs yet another hike in interest rates due to possible increasing inflation. I will withhold my personal rant on that here....
Originally posted by Schkeptick
We aren't having massive numbers of newly homeless people wandering the country and living in cardboard villages like in the Great Depression.