Real Estate Far Worse Than Advertised

Falling home prices represents a classic illustration to the old saying, adding insult to injury. Home prices despite on going currency devaluation continue to fall in most major US cities. In other words, the headlines ‘slant’, even the more realistic ones, tend understate the severity of the housing problem. This suggests another old expression, "far worse than advertised."

The real (gold adjusted) median housing price breached the 1983 and 2010 lows in February 2011. This suggests lower real prices in the future.

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


Headline: Home prices falling in most major US cities

Home prices are falling in most major U.S. cities, and the average prices in four of them are at their lowest point in 11 years. Analysts expect further prices declines in most cities in the coming months.

The Standard & Poor's/Case-Shiller 20-city index released Tuesday shows price declines in 19 cities from December to January. Eleven of them are at their lowest level since the housing bust, in 2006 and 2007. The index fell for the sixth straight month.

Home values in Atlanta, Las Vegas, Detroit and Cleveland are now below January 2000 levels.

Source: finance.yahoo.com