Housing Market Plunge Passes Depression's

[IScreamSundays]

Source: CBS

CBS) NEW YORK -- Home prices fell for the 53rd straight month in November, taking the decline past that of the Great Depression for the first time in the prolonged housing slump, according to Zillow.com.

Prices have fallen 26 percent since their peak in 2006, exceeding the 25.9 percent drop registered in the five years between 1928 and 1933, the housing data company reports.

The word comes on the heels of figures showing banks repossessed more than one million homes in the U.S. last year -- and they're expected to take back even more this year.

On "The Early Show" Thursday, Jason Cochran, Editor-at-Large at AOL's WalletPop.com, discuss what it all means for buyers, sellers, mortgage-seekers, people mulling refinancing or doing home improvements, and others:

Read more: http://www.cbsnews.com/stories/2011/01/13/earlyshow/main7243135.shtml

[ixion]

1. LOL.. so we're still not being honest and calling it a 'slump'... green shoots!

Until we're honest about the mess we're in, it's not going to start getting better. In fact, it's going to get worse the longer we pretend it doesn't exist.

[no_hypocrisy]

2. Are the two eras comparable? The Depression wasn't preceded by a bubble

in real estate, but rather the value of stocks. And without the bubble, wouldn't that make the drop of home prices during the Depression more significant?

Just askin' . . .

[TheEuclideanOne]

3. Sorry, not seeing your point.

Please elaborate.

[Downwinder]

4. Both involved credit bubbles.

[pottersvilleusa]

17. Yes, both involve cycles of loaning money

Then repossessing. And both involve planning to do just that.

[Trajan]

5. Does it really matter ?

if a price drop is preceded by a bubble ? .... Is that all that matters ?

The decrease in valuation is what is being measured here .... not the size of the increases that may or may not have existed before it ...

[No Elephants]

6. Are you sure there was no real estate bubble in tihe Twenties?

This mess was preceded by a stock bubble AND a real estate bubble. The tiwo were noti unrelatied--and I don't mean only by mortgage derivatives. It's kind of "rising tide lifts all prices."

[Javaman]

14. Remember the movie "coconuts" by the Marx Brothers?

it was about the real estate bubble in florida just prior to the depression.

They were selling swamp land in florida as if it were a paradise. So many people lost their shirts down there.

[fascisthunter]

9. um... there was a bubble before the great depression

[ixion]

10. well, the value of stocks have been over-inflated, too... made worse by speculation in housing

which is why this is closer to the 1890's depression (which was worse that the so-called 'Great' Depression).

Still, it's a depression nonetheless, no matter what the root cause, and there are comparisons to be made, to be sure.

To your point: There actually WAS real estate bubble prior to the GD.

[Javaman]

13. Do you know what buying on margin means?

do you know that it was effectively created by the rich?

do you know that there was basically a margin bubble?

Come on, read the history, it's all there.

[SoCalDem]

7. the lead-up to 2006 was irrational exuberance, remember?

If you look at long-term housing appreciation, you will see a gradual incline and then a wild upward swing.. Until prices fall back to what would have been a normal uptick, we are still in for more devaluation

[Rockholm]

8. Nice to see the doom and gloomers are STILL going after Real Estate.

A blanket doom and gloom is fine for Florida, Califormia, Arizona, Nevada, Ohio, etc. Every real estate amrket is different. Believe it or not, there are places where real estate is doing fine.

[Javaman]

16. 53 months in decline.

If those other markets are doing just great, why then do we have 53 months of continued decline?

Because those other markets just aren't doing well enough to offset the decline.

It's the sum total. If it were done regionally, that would be a different story, but last time I checked, we live in a nation. And as such good and bad totals effect all of us.

So while other markets maybe doing well, the over all outlook still stinks.

[girl gone mad]

19. "It's different here."

Hmmm... seems like I've heard that one before.

[Rockholm]

20. Well, it certainly is.

[wishlist]

11. This time more rampant real estate speculation and over development

Home prices had not skyrocketed as much before the Great Depression. The continuing price drops aren't surprising because incomes kept falling while many sellers kept trying to get unrealistic inflated prices for many months after this crash. I know several people with empty second homes on the market for years who only just recently faced reality and reduced their asking prices by over 30% to cut their losses. In 2009 I inherited and quickly sold our old family home (in another state) for 40% below its appraised value rather than holding out for a higher price while paying taxes and upkeep indefinitely. It was a difficult decision but I am glad to have sold it to a young family who are enjoying and preserving the old homeplace.

[lonestarnot]

12. Part of it due to out right thievery by the fucking banks. They want it, they just take it.

[joshcryer]

15. Good for me. :D

[Nye Bevan]

18. Good. Housing prices rose to ridiculously stupid levels

and a severe correction was necessary.

[mmonk]

21. Bad in that prolonged housing slumps keeps job growth down

and household wealth more tenuous. Usually building lifts the country out of recessions. More needs to be done to stem further worth decline through foreclosure. The government should help the people stay in their homes by reworking the debt.

[edhopper]

22. If you look at the basic metrics

for Real estate values, the market in the New York area still has a long way down to go.
Rent to own, price to income and historic values are still very high.
An example, in queens the price per sq ft is around $300, down from a high of $400. But in 2000 (before the bubble) it was around $50. With stagnant wages, this is still overly inflated.

[mdmc]

23. ..