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Bubble Meter is a national housing bubble blog dedicated to tracking the continuing decline of the housing bubble throughout the USA. It is a long and slow decline. Housing prices were simply unsustainable. National housing bubble coverage. Please join in the discussion.
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The Bubble Meter Philosophy
The best way to get the housing market thriving again is to drop prices to the point where supply equals demand. Home sellers might not like it, but it's good for buyers and it's great for Realtors.
For Realtors, the best way to make more money is to sell houses quickly, and the best way to sell houses quickly is to convince the seller to drop the price.
For Realtors, the best way to make more money is to sell houses quickly, and the best way to sell houses quickly is to convince the seller to drop the price.
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When will inflation-adjusted DC-area housing prices return to pre-bubble levels?
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Bubble Meter Archive
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2010
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June
(18)
- Year-over-year home prices up 3.8% in April
- An interview with Robert Shiller
- Housing news from the past week
- When do underwater borrowers walk away?
- Home sales plunged in May
- Economic activity shifting from construction to ma...
- Flashback: Housing bubble — or bunk?
- Some news I missed over the past week
- Savings gluts
- Renters-in-waiting
- Thin ice and the FHA
- Housing after the tax credit
- Zillow's view of the housing market
- My two year blogging anniversary
- Paul Krugman on the housing bubble
- Initial jobless claims stuck so far this year
- IMF economist: home prices have much more to fall
- Don't blame the CRA
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June
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This is a classic example of the thought process that cause so many economic problems:
ReplyDelete"Freddie Mac's analysis of single-family houses over the last half century hasn't shown a single year when the national average housing price has gone down. "
So since something hasn't happened in a few decades its not going to happen. And the fact the the ecnomic situation, particularly in housing, was historically unprecedented does not matter. Its the same thing that made so many financial models completely worthless. They looked at historical data without noticing that conditions had changed dramitically making the historical data non-applicable.
On the flip side, Baker's quote is "We've never seen this sort of run-up in home prices in U.S. history. In the past, home prices have always moved pretty much at the same rate with inflation's overall rate. But in the last seven years, they've outpaced the rate of inflation by 60 percentage points. ". Or in other words, don't talk to me about what has happened in the past without incorporating the fact on the ground in the present.
But of course, no one could have seen it coming because its impossible to identify a bubble when its happening. Greenspan told me so.
I love "experts." Like the previous comment stated - they analyze isolated statistics for the past 50 years and think they can predict the future. When my idiot neighbor used to say "house prices never go down," it wouldn't bother me because he doesn't know any better. When economic "experts" said it, it drove me insane. The same way it drives me nuts listening to these same people talk about an economic recovery.
ReplyDeleteAwesome post, Was it so long ago??
ReplyDeleteHi
ReplyDeleteIm back and I think this is a great blog.
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Thanks anonymous! I like your spam link. ;)
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