Housing Bubble Still Bursting

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Federal home-buyer tax credits expired last spring, and a few months later home prices started to sag again. As of November of last year, they’re still sagging:

The 20-city index is now about 3 percent above April 2009 levels, “suggesting that a double dip could be confirmed before spring,” David Blitzer, the index committee’s chairman

….From October to November, prices fell in 19 of the 20 metro areas tracked by the Standard & Poor’s/Case-Shiller index, widely considered a gauge of the housing market’s health. The only exception was San Diego, where prices were basically unchanged.

My own guess is that house prices still have a ways to fall, but not a long ways. Still, even another 10% over the next year or so would continue to put a big drag on the economy. Prosperity may be somewhere around the block, but it’s not quite around the corner yet.

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DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily crazy—Mother Jones' journalism is driven by one simple question: Will America move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

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