Can't sell your home for a decent price? You're not alone.
American homes are expected to be worth $1.7 trillion less in 2010 than they were worth last year, according to a report released Thursday by real estate website Zillow.
This year's drop in home values is 63% bigger than the $1 trillion dip in 2009, and brings the total value lost since the housing market's peak in 2006 to a whopping $9 trillion.
Stop and process that. Some $9 trillion has been taken out of our economy since the housing bubble burst in 2006. We've lost $2.7 trillion in the last two years alone. No wonder the stimulus didn't magically fix things, it's only a fraction of the money taken out of the economy.
Housing price drops have accelerated too, proving what I said months ago that 2010 was the start of a double dip in the housing depression. That depression will continue to get worse as the net worth of middle-class homeowners continues to vanish.
No stimulus could make up for the amount lost, but the Republicans don't even want to try to help. We're told we need to tighten our belts yet again.
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4 comments:
Those #'s are astounding, but it was never real money to begin with. Houses, etc. are only worth what someone is willing to pay for them. Housing prices over the last decade were way overheated.
Agreed. All the economic growth of the last decade was a housing bubble.
Now we're suffering from its detonation effects.
It's real money for those millions who are underwater on their mortgages.
And for the loads of people that, just a few short years ago, counted their homes as retirement-funding assets.
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