The “Unexpected” Drop in Home Prices

by Sal on January 25, 2010

in Economy,Politics

Ok, can we drop the term “unexpected” when we talk about financial data?  I can’t remember when I’ve seen “unemployment figures fell as expected.”  You see, analysts bet on a particular number (i.e. 500,000 jobs lost) and when that number comes in over or under, it is “unexpected.”  For something to be “expected” it would have to exactly match analysts predictions which is highly unlikely on its face.

That being said, December home prices “unexpectedly” fell by 17%.  That’s a huge drop, and shows that the housing market is not in full blown recovery mode.  In fact, it is the largest drop in 40 years, and even the extension of the $8,000 homebuyers tax credit is not enough to keep prices from falling.  If the real estate market stumbles and prices fall even further, there is no way that we are going to crawl out of this recession, and no way employers are going to start long-term hiring again.  The value of real estate is ultimately what did Japan in for the “lost decade” of the 90s, and it is what is doing us in today.  Yet all Obama can do is push ObamaCare.

H/T: Ace of Spades

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Jobless Claims Rise Unexpectedly, As Expected | Axis of Right
February 18, 2010 at 11:20 am

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