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Posts Tagged ‘real estate bust’

Nobody in their right mind should buy a house today. If you have to relocate, you should rent, not buy. Home prices just keep dropping as Obama gives confidence to nobody.

Sales of existing homes unexpectedly plunged in January to the lowest level in nearly 12 years as pessimism about the economy grew. sales nationwide fell 7.6 percent from a year earlier. The median sales price in January plunged to $170,300, down 14.8 percent from $199,800 a year earlier and from $175,700 in December. It was the lowest price since March 2003 .

Historically, real estate corrections take prices back ten years, and so far prices are only back six years, to 2003 levels.

So it is too early to buy based on past cycles.

But this is worse than past cycles because the government is meddling with the free market, thereby artificially prolonging and deeping the decline.

If the government stopped bailing out deadbeats, the market might stabilize within a year at perhaps 15 percent lower prices.

But with the Food Stamp President keeping the free market from working, the decline will last longer.

Obama must shut down Fannie Mae and Ginne Mae and ban the sale of securitized mortgage backed securities.

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