Home Prices Down 20% Since July 2006

Here is the most important fact underlying the economic meltdown: Home prices continue to decline. The S&P/Case Shiller composite index showed prices dropped nearly 1% from June to July.

Until the housing market finds a floor, we will not be able to turn things around. And there are still more declines to come before housing prices return to their historical trend. (Click on the link and follow the red line back along the trend line. The median home price should be in $100,000 to $150,000 range. The National Association for Realtors shows the national median existing-home price for all housing types was $203,100 in August, down 9.5 percent from a year ago when the median was $224,400.)

Still plenty to go.

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One Response to Home Prices Down 20% Since July 2006

  1. Voleo says:

    This is why Congress needs to help people with their mortgages. For once instead doing it from the top down, let’s do it from the bottom up. Help people pay their mortgages and set the floor and then all those derivative bonds will have a value.

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