The Truth About the U.S. Housing Market – Seeking Alpha

by Robert Mack on January 6, 2011

in Buyers, Latest News, Sellers

Last week, the United States Case-Shiller 20-Cities Composite House Price Index took an unexpected plunge, falling 1.3% in October from a month earlier. Prices have now fallen by around one-third:

[Click all to enlarge]

Month-over-month prices fell in all metro areas covered by the index. And in six markets — Atlanta, Charlotte, Miami, Portland, Seattle and Tampa — house prices reached their lowest level since the housing bust began in 2006-07.

The destruction of household wealth since 2007 has been shocking. According to the Federal Reserve, household net worth has declined $11 trillion from its peak in 2007. Relative to GDP, household net worth has fallen from around 470% in 2007 to around 375% currently. In fact, household net worth is currently near its long-run average level prior to the stock market and housing bubbles, as the following chart from Calculated Risk illustrates:

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What’s really going on out there????

Posted on Irvine Orange County Real Estate Market News

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