Wed, 14 Nov 2012, 11:04pm PST
Dean Baker is good. It is definitely true that NAR/Realtors, bankers and various other vermin are busy trying to re-write the history of the great housing bubble.
Dean Baker is an interesting case study. He was worried enough that he sold in 2004 and started renting, hoping to buy back after the bubble burst at much lower prices.
Unfortunately for him, he was living in DC proper - the land of perpetual money printing. Thus prices moved much higher still in 05 and 06 while he waited, renting.
From 2006-2009 prices did crater, but only in the DC exurbs and some low end suburbs. In DC proper where he wanted to live, they only fell (roughly) -10% - basically going back to 2005 prices.
In late 2009 he capitulated - buying in DC at prices even higher than those he saw when he sold in 2004.
Thu, 15 Nov 2012, 12:21am PST
basically going back to 2005 prices.
I think the bubble was pretty easy to see, but I thought we would inflate our way out of it, until I saw what had happened in Europe, and what's happening in South America right now.
There's no end to the bubble until it's all used up.
Governments have done everything they can to prop up housing, or the value of those housing unit assets, but there must be a point where it hits a brick wall.
I never thought that five years after 2007 we would be in basically the same place as when the bubble was evident.