Housing is Still Seeking a Bottom

The housing market is still sputtering along.  Here is the latest:

  • Case-Shiller index down 4.5%
  • Availability of credit continues to drop
  • High unemployment – job growth was nearly flat in June
  • Psychology – people continue to “hold out” for lower prices

The video below shows the enourmous headwinds that housing prices face when they recover from a bubble. In the past, prices “overshoot” from an extreme high to an extreme low. It will take years for population growth to soak up the excess inventory.

Video Link:

Leave a Comment

Filed under Real Estate

Leave a Reply

Your email address will not be published.