Category Archives: Home Economics

Posts on the economic theory, inflation, deflation, debt, taxes, economic data, and current events.

4 Ways The Government May Try to Stabilize the Housing Market

The only reason why all of these “extend and pretend” gimmicks are needed is that, with home prices at their current levels, there simply isn’t enough demand. If Uncle Sam would get out of the way and let prices find their bottom, then, by definition, there would be appropriate demand and the housing market would be in harmony.
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Posted in Fresh Perspectives, Home Economics, The Daily Hotsheet | Tagged Foreclosures, Home Prices, Obama, Principal Reduction, Shadow Inventory, Strategic Defaults | 1 Comment

Permanently High Plateau Theory Touted for Australia Housing; Real Estate Agents Refuse to Disclose Sale Prices

At the height of every boom, bullish clowns inevitably come out of the woodwork touting the “permanently high plateau” prices will not drop much theory.
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Posted in Fresh Perspectives, Home Economics | Tagged Australia, Home Prices, Housing Bubble | Leave a comment

Are Home Prices Really Going Up?

There has been a flurry of recent reports that home prices have risen this Spring: Case-Shiller, The National Association of Realtors, and CoreLogic are all reporting strength in home prices. But, are home prices really going up? What’s actually going on here?
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Posted in Home Economics, Real Estate Data, The Daily Hotsheet | Tagged Home Prices, Median Home Prices, Seasonal Adjustments | Leave a comment

Home Prices Best in 25 Years, Better Prices Still Coming

Here are some charts showing nominal and real (CPI inflation-adjusted) housing declines in 20 Case-Shiller metro areas. Charts are grouped by 10 least expensive and 10 most expensive areas. Additional tables show housing declines from the peak. An explanation follows the charts. Continue reading

Posted in Fresh Perspectives, Home Economics, Real Estate Data | Tagged Case-Shiller, Home Prices | 1 Comment

Europe at the Abyss; US Housing in the Abyss; Who is to Blame?

Blaming banks for lending when real interest rates are hugely negative is tantamount to placing a bottle of vodka in front of an alcoholic, telling the alcoholic it is the best vodka in the whole world, then blaming the alcoholic for what happens next.
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Posted in Fresh Perspectives, Home Economics | Tagged Home Prices, Housing Bubble, The Fed | Leave a comment