Why home values may take decades to recover

[tdietrich1]

http://www.usatoday.com/printedition...s12_cv.art.htm

[Joseph Burkeson, CMI]

Great article, thanks for posting.

[Michael R. Boyett]

I recently saw this exchange on another blog somewhere and got a chuckle out of it:

All indicators suggest a turn around and recovery of the real estate market now that the elections are behind us. The first quarter of the new year should result in rebounding home prices, fewer foreclosures and strengthening of home sales. - recent Realtor newsletter comment

More blather from the real estate world, more pipe dreams of how house prices should not be allowed to fall to their real values. A house is a box that sits in the rain and deteriorates. Therefore, the rain-soaked box falls in value, just like anything else. The cotton candy world of real estate wealth is over. No amount of crybaby, footstamping, breath-holding childish antics is going to stop this runaway train. It's over. Put some cotton candy on your real estate license, and eat it. Then, go to your room. - Anonymous response

[Brian E. Kelly]

Maricopa is not a fun place to go these days. Way out in BFE and houses for sale as far as you can see.

[Greg Bell]

I think that it could take decades for the whole economy to change. As much as I hate to say it we are going to have another depression that is going to make the 1930's look pretty good. The biggest problem is that we are not going to have another world war pull us out of it. The next world war will be the end of this planet as the way we know it now. On a positive note I am glad that I am older as I could leave this world tomorrow and have no regrets.

[Bob Elliott]

There is no doubt things are going to change.
Reality had to take hold at one point.

The USA has been resting on it's laurels for a long time.

Wake up call was needed.

[klott]

Home values are not really low, they are just back to where they should be.

[Emmanuel J. Scanlan]

Originally Posted by klott

Home values are not really low, they are just back to where they should be.

Exactly!

When I went looking for a home in 1999 - 2000 it was crazy and had just began. Homes barely hit the market, many did not, and already buyers were offering 5% over asking price. As you can guess the rest is history.

Home prices never should have reached the levels they are/were today. That also goes for the value of stocks in the stock market. Here is another reason why all of this is in such bad shape. It is another story of a new breed of super thief.

http://www.cnbc.com/id/28182873

[Joseph A. Ferry]

On January 20, 2009, all will be well. Right?

[kpierce]

Originally Posted by jferry1

On January 20, 2009, all will be well. Right?

Yep, immediately. You won't even know where you're living on the 21st. You'll see nothing but rainbows, blue skies and the occasional unicorn.