As the economy revs back to life, with signs of hiring on the horizon, the housing market is being left behind.
In the past few years, we’ve all been careful to choose our words carefully, not calling it a recession until it fit the technical definition and avoiding any inappropriate use of the “D” word — Depression.
Things were bad but the broader economy never reached Depression territory. The housing market, on the other hand, just crossed that threshold.
Home values have fallen 26 percent since their peak in June 2006, worse than the 25.9-percent decline seen during the Depression years between 1928 and 1933, Zillow reported.
November marked the 53rd consecutive month (4 ½ years) that home values have fallen.
What’s worse, it’s not over yet: Home values are expected to continue to slide as inventories pile up, and likely won’t recover until the job market improves.
And while the president is physically protected in an emergency, whisked to a bunker at an undisclosed location, the actual White House is not: The value of 1600 Pennsylvania Avenue has dropped by $80 million, or nearly 25 percent since the peak of the housing boom. It’s current value is $251.6 million, according to Zillow, down from $331.5 million.
(Source: CNBC)
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4 Responses
But Boruch H-shem housing in frum communities are still above affordable prices.
yeah, Im still waiting for prices to drop in ramat beit shemesh.
Arby, they’re referring to the States. The White House hasn’t been in Israel for decades. In the Holy Land nothing comes down except for rain… and that’s only if you pray real good.
Housing prices were also artificially vastly inflated before this drop, so the 26% drop is only a partial correction after this speculative massive bubble.
Take either the median or average income today and the median or average house price today and compare it with the same from 20 years ago. The ratio is way more unfavorable to buyers today.
And, as others said, “frum” neighborhoods in particular are still unaffordable unless either you are wealthy or someone else who’s paying for (at least part of) the house is.