This bites...

Home prices plummeted a record 18 percent in October according to a closely watched index tracking 20 metro areas.

18 frigging percent in one month ? You gotta be kiddin me !!!

18 was Y/Y only 2.2 m/m

ONLY down 25% from peak. So how many people who bought homes between 2003 and 2006 are now upside down on their mortgage ? And folks think we have a 'glut' of homes on the market now, wait until next year at this time. The government WILL have to step in and do something to keep these folks in their homes. Or we will most certainly have a greater depression. Might want to be buying stock in Coleman ....

ONLY down 25% from peak. So how many people who bought homes between 2003 and 2006 are now upside down on their mortgage ?

And folks think we have a 'glut' of homes on the market now, wait until next year at this time. The government WILL have to step in and do something to keep these folks in their homes. Or we will most certainly have a greater depression. Might want to be buying stock in Coleman ....

Why does keeping these people in their houses help the real estate market? Let them walk away, ding their credit and keep it on there for a good long time. They can go back to renting...right where they should have been. That will create a demand for rentals, and eventually a demand for housing as rents go up.

IT

Why does keeping these people in their houses help the real estate market? Let them walk away, ding their credit and keep it on there for a good long time. They can go back to renting...right where they should have been. That will create a demand for rentals, and eventually a demand for housing as rents go up. Amen, and same goes for student loans and credit cards. tuition has skyrocketed, and same as house prices, the availability of credit to finance these loans allowed schools to keep pushing up fees. time to come down to earth, with a possibe resut that we wil have better educated people in future who go for real degrees in science, not just MBAs and MAs in gender studies. klh