THE LONG-TERM

KA: especially considering the news expected to surface Tuesday that prices have now dipped below the previous lowest point recorded since this recession kicked in three years ago.

The Case-Shiller Index of Home Pricing demonstrates the evolution of residential realty pricing since the 19th century and is linked here.

As we see, the spike that began in the late 1990s has inverted and is coming back to the Index’s long-term trend line. Which, I suggest, means that the free-fall is over.

Of course, we could be setting an historical precedent by descending even further than the long-term base - but with the economy improving slowly, slowly, that may not be in the cards.

As soon as the Feel-Good-Factor returns sufficiently strongly to American consumer mentalities, we shall be back to buying residential housing. Yes, at ridiculously lower prices than five years ago, but not at all bizarre when one considers the long-term trend line.

hello. yes it is good to buy a home today, but there is
no money being lent. the prospering sectors are Wall
Street, the government, and big oil. big oil always
disgusts me. the fracking method being deployed in
Texas will destroy groundwater, but 3000 new wells will
be drilled. those companies usually return profit in 22
months, but Wall Street is seeing to it they will
profit in eight months. Washington, DC is building and
growing faster than ever. get a job lobbying for big
oil in Washington,DC: and you can build your mansion.

Things to do today to keep from losing the house
assess the risks of credit card bankruptcy
set the tack for giving the car back
prepare for an adjustment to self identity

We’ve been part of the middle class
at the periphery for sixteen years
as the collapsing towers of finance restructure
it is the edge which first disappears

The battle for property a lopsided fight
institutions of war have the high ground
deeds of trust are pointed at us
sighting customers like deer in a compound

All wealth the middle is going to possess
built around four walls and maybe a lawn
a few grand gambling on stocks a placebo
sleight of hand and consider that gone

To understand money as a structured order
to make 300 million people behave
a social coral of labor distribution
paltry sums spent in limited ways

For this amount entitles you to a shelter
work more and you get power and heat
bust your balls you can think you’re important
put brand name shoes on your feet

We have no choice but to go along
a ride with conformity the price of admission
debt if available gives illusions of security
if not then suffer want and humiliation

Such a life for the unlucky few who
having laid claim to playing by the rules
circumstance and trickery suddenly emerge
to kick those most vulnerable in the jewels

Generalities collapse now crisis is upon us
philosophic babble sounds phony
all the meager possessions we hold
easily relinquished is such baloney

Suddenly age has special meaning
not in any wise or maturing relevance
blind as a mole and pushing sixty
now plagued by acute somnambulance

Tensions flare as miscalculations revisit
every conversation with the spouse
contract signed on a seven year fix
now threaten to reclaim the house

Uncertain course and timing ever critical
I would love to say enough is enough
full moon rising over eastern horizon
dangerous times for a howling wolf

“Certain sectors of the American economy are showing signs of life….”  And what sectors would those be, other than the Ponzi scheme/insider trading stock market?  Are you talking about the 62,000 low-paid part-time jobs at McDonald’s?  Yeah, that’s really going to pull the economy out of a depression.

In theory, falling real estate prices will make it possible for more people to buy real estate on a sound basis (at least, sounder than the prospect of bundles of future funny money).  Why is this a ‘crisis’?

But real estate will not be a good investment until real estate prices go back to their traditional relationship with other prices, wages, and incomes.  Until then, it’s not a good idea to buy unless you plan to hold and use what you’ve bought for a long time.

Home ownership is a good idea as long as the housing market is liquid and prices are stable or rising. Unfortunately, many families are stuck in houses they can’t sell either because there is no buyer or because they are underwater on the mortgage. And worse, if you’re in such a situation and you lose your job, your immobility makes it harder for you to sell your labor. Today, it makes much more sense to rent.