Home sales continue plunge

[briansd1]

[quote=CA renter]
Lower housing prices are exactly what’s needed to allow us to rebuild a **sustainable** recovery that doesn’t harm future activity. Lower prices free up more money as wages — with no debt offset — can be spent on more productive/beneficial endeavours.[/quote]

I would agree with you if housing prices were detached from everything else.

But since we, as a society, are mortgaged to the hilt, asset prices determine our spending power.

In the long run, if housing were driven down lower as a percentage of income, we’d have more money to spend elsewhere. But for now, I’m in agreement with Nor-LA-SD-guy.

Baby boomers depend on asset prices to retire.

The government has no choice now but to prop up house prices. We’ll just pay for it later. That’s why I expect years of price stagnation.

[UCGal]

[quote=Nor-LA-SD-guy]Hate to break this to you guy’s but the economy will never recover until home prices are near peak again, (not that I think that’s going to happen anytime soon) it’s just that there is no way anyone who once thought his home was worth such and so is going to feel like spending any money until it gets back close to that point.

It’s just human nature.
If only 15% or so fall into that category then we are going nowhere.

Also the Property tax base must get back to 2006 and then some if we are to keep the current Local Gov spending at current levels.

Otherwise it just one cut followed by the next more painful cut then the next.[/quote]

This assumes everyone bought during or around the peak and that everyone’s tax basis is based on peak pricing…

I bought close enough to the peak (2003) to feel the emotions when I look at the zillow price now vs 2006… but not enough to make spending decisions based on hypothetical values of 2006.

My dad bought in the mid 60’s and sold to me in 2003… I doubt he cared one iota when housing prices went down in the early/mid 90’s… it was still so much higher than he paid.

People who bought pre-bubble are less likely to look at peak pricing as the “goal”.

[UCGal]

[quote=Nor-LA-SD-guy]Hate to break this to you guy’s but the economy will never recover until home prices are near peak again, (not that I think that’s going to happen anytime soon) it’s just that there is no way anyone who once thought his home was worth such and so is going to feel like spending any money until it gets back close to that point.

It’s just human nature.
If only 15% or so fall into that category then we are going nowhere.

Also the Property tax base must get back to 2006 and then some if we are to keep the current Local Gov spending at current levels.

Otherwise it just one cut followed by the next more painful cut then the next.[/quote]

This assumes everyone bought during or around the peak and that everyone’s tax basis is based on peak pricing…

I bought close enough to the peak (2003) to feel the emotions when I look at the zillow price now vs 2006… but not enough to make spending decisions based on hypothetical values of 2006.

My dad bought in the mid 60’s and sold to me in 2003… I doubt he cared one iota when housing prices went down in the early/mid 90’s… it was still so much higher than he paid.

People who bought pre-bubble are less likely to look at peak pricing as the “goal”.

[UCGal]

[quote=Nor-LA-SD-guy]Hate to break this to you guy’s but the economy will never recover until home prices are near peak again, (not that I think that’s going to happen anytime soon) it’s just that there is no way anyone who once thought his home was worth such and so is going to feel like spending any money until it gets back close to that point.

It’s just human nature.
If only 15% or so fall into that category then we are going nowhere.

Also the Property tax base must get back to 2006 and then some if we are to keep the current Local Gov spending at current levels.

Otherwise it just one cut followed by the next more painful cut then the next.[/quote]

This assumes everyone bought during or around the peak and that everyone’s tax basis is based on peak pricing…

I bought close enough to the peak (2003) to feel the emotions when I look at the zillow price now vs 2006… but not enough to make spending decisions based on hypothetical values of 2006.

My dad bought in the mid 60’s and sold to me in 2003… I doubt he cared one iota when housing prices went down in the early/mid 90’s… it was still so much higher than he paid.

People who bought pre-bubble are less likely to look at peak pricing as the “goal”.

[UCGal]

[quote=Nor-LA-SD-guy]Hate to break this to you guy’s but the economy will never recover until home prices are near peak again, (not that I think that’s going to happen anytime soon) it’s just that there is no way anyone who once thought his home was worth such and so is going to feel like spending any money until it gets back close to that point.

It’s just human nature.
If only 15% or so fall into that category then we are going nowhere.

Also the Property tax base must get back to 2006 and then some if we are to keep the current Local Gov spending at current levels.

Otherwise it just one cut followed by the next more painful cut then the next.[/quote]

This assumes everyone bought during or around the peak and that everyone’s tax basis is based on peak pricing…

I bought close enough to the peak (2003) to feel the emotions when I look at the zillow price now vs 2006… but not enough to make spending decisions based on hypothetical values of 2006.

My dad bought in the mid 60’s and sold to me in 2003… I doubt he cared one iota when housing prices went down in the early/mid 90’s… it was still so much higher than he paid.

People who bought pre-bubble are less likely to look at peak pricing as the “goal”.

[UCGal]

[quote=Nor-LA-SD-guy]Hate to break this to you guy’s but the economy will never recover until home prices are near peak again, (not that I think that’s going to happen anytime soon) it’s just that there is no way anyone who once thought his home was worth such and so is going to feel like spending any money until it gets back close to that point.

It’s just human nature.
If only 15% or so fall into that category then we are going nowhere.

Also the Property tax base must get back to 2006 and then some if we are to keep the current Local Gov spending at current levels.

Otherwise it just one cut followed by the next more painful cut then the next.[/quote]

This assumes everyone bought during or around the peak and that everyone’s tax basis is based on peak pricing…

I bought close enough to the peak (2003) to feel the emotions when I look at the zillow price now vs 2006… but not enough to make spending decisions based on hypothetical values of 2006.

My dad bought in the mid 60’s and sold to me in 2003… I doubt he cared one iota when housing prices went down in the early/mid 90’s… it was still so much higher than he paid.

People who bought pre-bubble are less likely to look at peak pricing as the “goal”.

[Nor-LA-SD-guy]

So did most people feel the ecomomy recovered until 1998 ?? Just my guess,

I guess we will need to wait and see.

[Nor-LA-SD-guy]

So did most people feel the ecomomy recovered until 1998 ?? Just my guess,

I guess we will need to wait and see.

[Nor-LA-SD-guy]

So did most people feel the ecomomy recovered until 1998 ?? Just my guess,

I guess we will need to wait and see.

[Nor-LA-SD-guy]

So did most people feel the ecomomy recovered until 1998 ?? Just my guess,

I guess we will need to wait and see.

[Nor-LA-SD-guy]

So did most people feel the ecomomy recovered until 1998 ?? Just my guess,

I guess we will need to wait and see.

[sdrealtor]

Look at all that shadow inventory, vacant homes are everywhere, the tsunami is coming, rates are about to soar, inventory is skyrocketing, unemployment i sdhigh and getting worse, the public sector is about to take a major hit, the stock market is tanking, home sales are down, deflation is on the way….get ready for the next leg down.

Did I get it all?

[sdrealtor]

Look at all that shadow inventory, vacant homes are everywhere, the tsunami is coming, rates are about to soar, inventory is skyrocketing, unemployment i sdhigh and getting worse, the public sector is about to take a major hit, the stock market is tanking, home sales are down, deflation is on the way….get ready for the next leg down.

Did I get it all?

[sdrealtor]

Look at all that shadow inventory, vacant homes are everywhere, the tsunami is coming, rates are about to soar, inventory is skyrocketing, unemployment i sdhigh and getting worse, the public sector is about to take a major hit, the stock market is tanking, home sales are down, deflation is on the way….get ready for the next leg down.

Did I get it all?

[sdrealtor]

Look at all that shadow inventory, vacant homes are everywhere, the tsunami is coming, rates are about to soar, inventory is skyrocketing, unemployment i sdhigh and getting worse, the public sector is about to take a major hit, the stock market is tanking, home sales are down, deflation is on the way….get ready for the next leg down.

Did I get it all?

[Author]

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