The idiot maestro has said the economy can't recover until house prices stabilize. Well that didn't hapen yet. We just clocked in a 17% drop from year-on-year for August. Gee, they told me houses don't act like stocks and everyone wanted a house and with mega-immigration that the prices will only go up. In a deflating bubble, house prices will not go up. Additional downward pressures on house pricing are that it is now more difficult than renting to purchase a house via expectation of a downpayment and rightful tighter credit conditions. Previously, with zero down and 110% financing it actually cost less to buy a house that is unaffordable to you than the pay first month's rent and security deposit. Massive layoffs also create a difficult prospect for those affected and their coworkers to justify bringing in new mortgage, tax, and home owner association obligations to their monthly budget. Back to the tracking. With the prices down like this, it makes idiots who like to pay for cars and vacations over 30 years less able to take out a home equity line of credit as they turn from having equity to being underwater. For the fortunate souls who do have equity, it is also a reducing effect when the price of the house drops so much. Less clownsuming going on due to the almighty American HELOCopter.
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