Home Prices Drop, And Consumers Turn Gloomy

[Purveyor]

By Leah Schnurr

NEW YORK | Tue Jan 31, 2012 11:16am EST

(Reuters) - Home prices fell more steeply than expected in November, and consumer confidence soured in January, highlighting the hurdles still facing the economic recovery.

The S&P/Case-Shiller composite index of single-family home prices in 20 metropolitan areas declined 0.7 percent on a seasonally adjusted basis, a survey showed on Tuesday, a bigger drop than the 0.5 percent economists expected.

The decrease added on to the 0.7 percent decline seen in October from September.

Separately, a report from The Conference Board said an index of consumer attitudes fell to 61.1 in January from a revised 64.8 the month before, as Americans turned gloomy about the job market and their income prospects.

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http://www.reuters.com/article/2012/01/31/us-usa-economy-idUSTRE7BM0AB20120131

[mactime]

1. i'm confused

just last week I was reading articles that everything was going great.

[glowing]

2. We need to elect some progressive legislators and give ourselves 65 Dems in the Senate..

Then perhaps, legislation mandating cram-downs on these mortgages would help to push the country out of the bad economy. There are a lot of people sitting in underwater homes (like myself), and some of them will NEVER return to the value that they bought in (not in the 30 yrs that they are expected to pay the mortgage for)...

It's nearly impossible for people to sell so they can move. And people are having to make the strategic decision to walk away from their home and tank their credit score for a little bit in order to get out from under a home that is holding their family back. And then what, wealthy investors swoop in and buy for pennies on the dollar in private auctions and then rent. So, the rich get richer and the poor get poorer and are now indebted to renting from those who crashed the economy?

We actually need a different system for Americans... We are much more mobilized as a nation. People move for a different outlook and much more often for a different job. Buying into a 30yr mortgage when the family is only going to be living in the home for 5 to 10yrs, doesn't work out financially all that well... On the other hand, if you don't "own" your home, you are subject to rent and you are at the mercy of a leasing agent year to year and subject to their rules and stipulations.... Like painting a room or doing upkeep or what not). The reality is we need a different financial/ living arrangement on a whole as a nation. People should have some ability to have some ownership and equity for paying a payment each month, but be able to easily move when they need to move (either for a different location or for maybe a bigger home as family grows and then again smaller home when the kiddies leave the nest).

Its actually time to use our noodles to think outside of the box to create a country that is easier to operate in. We need a system that allows us to be mobile, but also doesn't screw the hell out of us all. I'm sure there are people who work in the business who have thought of ways or situations or types of solutions that would make more sense in a modern world like ours....