Dr Housing Bubble 04/04/10

[Crewleader]

Real Homes of Genius – Culver City and the next Phase of Housing Price Declines. Home for Sale at $779,000 and Home Across the Street Sold for $200,000 in 2000. Bubble Priced Homes Entering Precarious Financial Test

The median home price of a home sold in the U.S. is now down to $165,000 sending us back to nominal levels not seen since 2002. While the stock market is up 70+ percent in one year, housing as the store of most of American’s net worth is still limping along at the bottom. No bounce in this asset class. This of course should not be a surprise given the magnitude of this housing bubble, something not seen since Florida in the 1920s. Only difference this time is that it went national. During the Great Depression roughly 40 percent of Americans were considered home owners. Those that owned actually had to come in with more funds and ironically, they did better that time around with homes maintaining 70 percent of their value while stocks fell 89 percent. California as a state has surpassed that mark with real estate values down nearly 50 percent from their peak values. More Americans this time around are also home owners which spreads the pain around.

http://www.doctorhousingbubble.com/real-homes-genius-culver-city-california-housing-values-markets-pricing-correction-median-home-price/

[loqqy]

1. cali

funny you mention California, as around my area housing is still pretty high (avg 300K for a 3bdrm). Granted this is down from 450K a few years ago, but still...