US house price drop accelerates

Long-term readers should not be shocked by this news. The real estate decline began as a slow motion train wreck in 2001. It picked up speed in 2005. The trend in real, currency adjusted prices, illustrates the both past, present, and future pain in this heavily-hyped market. Market forces will continue to pressure housing into the cyclical low still years away, but an unsuspecting public won’t likely accept it until near the end.

History is repeating, but few recognize it. As a result, history repeats and the public finds itself shocked by these seemingly ‘new’ and unusual events.

U.S. Median Home Price (MHP) And MHP to Gold Ratio


S&P Homebuilders Index (HB) AND HB to U.S. Median Home Price (HBMHPR)


Headline: US house price drop accelerates

US house prices have suffered their biggest quarterly fall since the collapse of Lehman Brothers, underlining the scale of the headwinds still facing the world's biggest economy.

Average house prices slumped 3pc in the first three months of this year, a decline that pushed the number of homeowners in negative equity – where a mortgage is higher than the value of a property – to 28pc from 22pc a year earlier, according to new research from Zillow, a major US property website.

Source: telegraph.co.uk

Thanks Bob!