Once again good news on the housing market for the middle class and less fortunate people: Home prices continued to drop across the board, thus making homes more affordable to the average American. The composite index dropped by 19% when compared to September 2007. The two cities with the largest annual declines were Phoenix (32%) and San Francisco (30%). Nationwide home prices are still at 2004 levels so there is still plenty of room for falling prices in the months to come.
Below please find the development of the composite index and the two cities with the largest decline:
Click image to enlarge.
Full Report: Go to S&P Website.
Barack Obama, President Bush and Wall Street don’t like to see homes become more affordable to the little guy who works hard, produces, and saves up money. They hate to see opportunities for common people to realize their dreams of owning a home one day. They have pledged to do whatever they can to stop home prices from dropping further. They want to take money away from those people via taxation and inflation in order to prop up home prices.
I have a recommendation for them: Why don’t you start a program that aims at burning down 1/3 of the entire supply of homes in the United States. This will successfully stop home prices from falling sooner or later. If 1/3 doesn’t suffice, just keep firing up additional homes until the supply is low and prices high enough so only the very fortunate people will be able to buy. This, and nothing but this, is the essence of what they are trying to accomplish, intended or not.