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Don’t Buy A House In 2011 Before You Read These 20 Wacky Statistics About The U.S. Real Estate Crisis

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Unless you have been asleep or hiding under a rock for the past five years, you already know that we are experiencing the worst real estate crisis that the U.S. has ever seen.  Home prices in the United States have fallen 33 percent from the peak of the housing bubble, which is more than they fell during the Great Depression.  Those that decided to buy a house in 2005 or 2006 are really hurting right now.  Just think about it.  Could you imagine paying off a $400,000 mortgage on a home that is now only worth $250,000?  Millions of Americans are now living through that kind of financial hell.  Sadly, most analysts expect U.S. home prices to go down even further.  Despite the “best efforts” of those running our economy, unemployment is still rampant.  The number of middle class jobs continues to decline year after year, but it takes at least a middle class income to buy a decent home.  In addition, financial institutions have really tightened up lending standards and have made it much more difficult to get home loans.  Back during the wild days of the housing bubble, the family cat could get a zero-down mortgage, but today the pendulum has swung very far in the other direction and now it is really, really tough to get a home loan.  Meanwhile, the number of foreclosures and distressed properties continues to soar.  So with a ton of homes on the market and not a lot of buyers the power is firmly in the hands of those looking to buy a house.

So will home prices continue to go down?  Possibly.  But they won’t go down forever.  At some point the inflation that is already affecting many other segments of the economy will affect home prices as well.  That doesn’t mean that it will be middle class American families that will be buying up all the homes.  An increasing percentage of homes are being purchased by investors or by foreigners.  There are a lot of really beautiful homes in the United States, and wealthy people from all over the globe love to buy a house in America.

But because of the factors mentioned above, it is quite possible that U.S. home prices could go down another 10 or 20 percent, especially if the economy gets worse.

So what is the right time to buy a house?

Nobody really knows for sure.

Mortgage rates are near record lows right now and there are some great deals to be had in many areas of the country.  But that does not mean that you won’t be able to get the same home for even less 6 months or a year from now.

In any event, this truly has been a really trying time for the U.S. housing market.  Hordes of builders, construction workers, contractors, real estate agents and mortgage professionals have been put out of work by this downturn.  The housing industry is one of the core pillars of the economy, and so a recovery in home sales is desperately needed.

The following are 20 really wacky statistics about the U.S. real estate crisis….

#1 According to Zillow, 28.4 percent of all single-family homes with a mortgage in the United States are now underwater.

#2 Zillow has also announced that the average price of a home in the U.S. is about 8 percent lower than it was a year ago and that it continues to fall about 1 percent a month.

#3 U.S. home prices have now fallen a whopping 33% from where they were at during the peak of the housing bubble.

#4 During the first quarter of 2011, home values declined at the fastest rate since late 2008.

#5 According to Zillow, more than 55 percent of all single-family homes with a mortgage in Atlanta have negative equity and more than 68 percent of all single-family homes with a mortgage in Phoenix have negative equity.

#6 U.S. home values have fallen an astounding 6.3 trillion dollars since the housing crisis first began.

#7 In February, U.S. housing starts experienced their largest decline in 27 years.

#8 New home sales in the United States are now down 80% from the peak in July 2005.

#9 Historically, the percentage of residential mortgages in foreclosure in the United States has tended to hover between 1 and 1.5 percent.  Today, it is up around 4.5 percent.

#10 According to RealtyTrac, foreclosure filings in the United States are projected to increase by another 20 percent in 2011.

#11 It is estimated that 25% of all mortgages in Miami-Dade County are “in serious distress and headed for either foreclosure or short sale“.

#12 Two years ago, the average U.S. homeowner that was being foreclosed upon had not made a mortgage payment in 11 months.  Today, the average U.S. homeowner that is being foreclosed upon has not made a mortgage payment in 17 months.

#13 Sales of foreclosed homes now represent an all-time record 23.7% of the market.

#14 4.5 million home loans are now either in some stage of foreclosure or are at least 90 days delinquent.

#15 According to the Mortgage Bankers Association, at least 8 million Americans are currently at least one month behind on their mortgage payments.

#16 In September 2008, 33 percent of Americans knew someone who had been foreclosed upon or who was facing the threat of foreclosure.  Today that number has risen to 48 percent.

#17 During the first quarter of 2011, less new homes were sold in the U.S. than in any three month period ever recorded.

#18 According to a recent census report, 13% of all homes in the United States are currently sitting empty.

#19 In 1996, 89 percent of Americans believed that it was better to own a home than to rent one.  Today that number has fallen to 63 percent.

#20 According to Zillow, the United States has been in a “housing recession” for 57 straight months without an end in sight.

So should we be confident that the folks in charge are doing everything that they can to turn all of this around?

Sadly, the truth is that our “authorities” really do not know what they are doing.  The following is what Fed Chairman Ben Bernanke had to say about the housing market back in 2006….

“Housing markets are cooling a bit. Our expectation is that the decline in activity or the slowing in activity will be moderate, that house prices will probably continue to rise.”

Since that time U.S. housing prices have experienced their biggest decline ever.

At some point widespread inflation is going to reverse the trend we are experiencing right now, but that doesn’t mean that most American families will be able to afford to buy homes when that happens.

As I have written about previously, the middle class in America is shrinking.  The number of Americans on food stamps has increased by 18 million over the past four years and today 47 million Americans (a new all-time record) are living in poverty.

Millions of our jobs are being shipped overseas, the cost of living keeps going up and an increasing percentage of American families are losing faith in the economy.

More Americans than ever are talking about “the coming economic collapse” as if it is a foregone conclusion.  Our federal government is swamped with debt, our state and local governments are swamped with debt and our economic infrastructure is being ripped to shreds by globalization.

So sadly, no, there are not a whole lot of reasons to be optimistic at this point about a major economic turnaround.

The U.S. economy is going down the toilet and the coming collapse is going to be incredibly painful for all of us.

Hopefully when that collapse comes you will have somewhere warm and safe to call home.  If not, hopefully someone will have compassion on you.  In any event, we all need to buckle up because it is going to be a wild ride.

  • Frank

    #21, federal gov’t employees will begin being layed-off (RIF, or Reduction-in-Force) this summer. Starting with the USPS (U.S. Postal Service) with buyouts and now RIFs (being sent out right now), the buyouts will be extended to the rest of the U.S. fedgov this Oct. 1st. After that, probably by January 2012, RIFs will be sent out gov’t wide. They will have to fire at minimum 10% of the fed. gov’t. and probably a lot more than that by the time its over at the end of 2012. That won’t help real estate prices any, at least in the D.C. area and probably have an effect elsewhere as well.

  • michelle

    the house next door has not been paid on in three years…

    no foreclosure proceedings

    not worth it

    won’t get half of what the previous mortgage was

    lots of work needs done

    tall weeds in yard

    • Cheri in ca

      Fire sale. 275k homes now 50k, im in !

    • Cheri in ca

      Fire sale. 275k homes now 50k, im in !……why wait

  • Tina

    The great recovery comes with the folks who lost their homes in 2007 and 2008 and even 2009 re-entering the home buying market. We are closing a buyer on a new home two years after foreclosure on previous home. The recovery depends on everyone getting back to ownership as soon as possible. They should not wait or think they cant. They will be in better loans, lower payments, owe way less and be able to get better homes. Many have not lost their jobs and can actually find home ownership payments to be less than rent now (especially in San Diego). Many homeowners before had to have both parents working and now have the chance to buy a little more modest home and pay for it on one salary. This is an opportunity to have a better deal. I hope people don’t shy away because it was bad for them before. Many lenders offer their bank owned homes to owner occupants first and then 15 days later to investors. The time is now. Money management Org is a great resource for credit counsel classes and first time homebuyer classes. Buyers are considered for loans 2 years after last mortgage late and three years since last tax claim of ownership (as first time owners again-eligible for all first time owner programs).

  • Faux Gary

    Simple- just tax the rich, buy houses and give them to everyone.

  • On the positive side, as inflation increases, salaries will increase to give people more devalued Dollars, which can pay off their fixed mortgage faster.

    Get financial education to create wealth during this financial crisis, from the Mike Dillard Elevation Group

  • Vic Motts

    I agree the Federal Government WILL eventually be forced to lay off a large percentage of public serpents (NOT a Misspelling!).. But it will take a collapsing dollar with the attendant rise in interest rates to initiate that.. I think the dollar.. While its days are numbered.. has at least 2 years left.. A much bigger concern is city, county and state employees that are going to get bagged.. Non- Federal government employees are either going to get drastic pay and benefit cuts (By decertifying Public unions.. aka Wisconsin).. or experience drastic layoffs… or both..
    These two factors alone doom the housing market for years..
    I am glad I don’t make my living in real estate…

  • Buy a house was the American Dream. Now the housing market is anything but a dream.

    The scary part is that so many more Americans could end up homeless due to all of the foreclosures.

    Prepare now for higher prices and potential financial crisis, with long term food storage, because you don’t want to compete at the grocery store when a crisis hits. Free Food 2Go

  • There are many people who haven’t paid their mortgage in years, but aren’t in foreclosure because the banks either don’t have the right paperwork, or because the property/neighborhood isn’t worth their time and efforts.

    In some neighborhoods 1/4 of the houses are vacant, which attracts vagrants and criminals.

    If you’re concerned about protecting your family in the event of a crisis, Glenn Beck recommends the SURVIVE IN PLACE Urban Survival Guide

  • Dan

    I wrote an article on how property value has dropped 194% since 2001 which was the top of the market according to value not price when measured against a basket of commodity’s.


  • Frank

    We went through a similar crisis in Canada in the 1990’s, but because the US is exponentially bigger, the crash will be felt around the world. Our bond rating was downgraded, members of the armed forces stood in line at food banks, and in fact our membership in NATO was almost removed due to lack of contribution. The federal government sacked thousands of employees, literally thousands. Unemployment was double digit for a decade. We finally climbed out of the mess in early 2000’s.

    Now the disease has affected the USA, but you have a population of 300,000,000 – not homogeneous and very little social cohesion or social trust. This is why your situation is so much scarier.

  • JO

    At least when hyperinflation finally fires up the Benanke press the plebs will be able to pay off their home loans in a week or two, with greenbacks delivered by chopper.

    But food and gas will cost an arm and a leg – literally.

    Buy gold and rest easy.

  • ScoutMotto

    I was able to make my last house payment early last year, thank God. I recommend whoever is able to do this to keep any and all proof of payoff. That includes the note and down to the last little email and piece of regular mail.

    The house next to me was abandoned by the most recent purchasers early last year. I hope to have neighbors someday soon.

  • David

    Michale wrote, “The U.S. economy is going down the toilet and the coming collapse is going to be incredibly painful for all of us.”

    All of us? No, more like *almost* all of us. The coming collapse, for example, won’t be painful for Ben Bernanke, Lloyd Blankfein, or Jamie Dimon (just to name a few). They have exit plans in place and plenty of gold stashed in Swiss vaults. They’ll be sipping Mai Ties from oceanfront mansions in Antigua (or similar) while the USA burns.

  • Nu Yawk Frankie

    The late John Templeton predicted – around 2005, I believe – a housing price collapse of 90% (NINETY PERCENT!) from peak.

    I remember thinking at the time that senility had finally set in (he died in 2008 at the age of 96).
    I’m now thinking that he might well have been onto something – that maybe we havent seen the REAL COLLAPSE yet… just the warm-up.

    Fasten your seatbelts.

  • randy

    our authoriites do not know what they are doing?? really?? these guys are all at the least college educated. these guys know what they are doing and they are getting away with it!! so, i ask who does not know what they are doing?? that is quite simply answered…we the people don’t!!! if we did, we would be in controll of our fate and not in this spiral down the drain..

  • Just Me

    everyone should have seen the housing crisis coming when any house that could be bought in the 60s for $29,000 was all the sudden worth $300,000 in the 90s,00s.
    I could have bought the house down the rd from me for $37,000 in 1984, the people(suckers) who own it now are upside down over $200,000 for a house that isn’t worth 40,000 and that is going on all over the county.the next few yrs are going to be very interesting.I can picture the tent cities on state land already.

  • Paul

    I don’t care about weeds. The are removed in half a day.

    A house should save me some energy, so it should be insulated, it shall have triple-glazed windows, it shall have a heating system that recycles the heat of outgoing air.

    Well, and it should have a fairly large garden for trees and veggies and flowers.

    Luckily I already have such a house. It came from a foreclosure and was half a century old and I re-built it according to my requirements for EU 1,000 per square meter.

    The weeds were high enough for my niece to hide in standing. For heating and warm water I use 2000kWh per year with winters below -20C.

  • The Baroness

    I live north of Atlanta and the half-empty subdivisions here are staggering. Driving around you will also see huge subdivisions that had the roads created, utilities, etc. but not ONE SINGLE HOME built. Basically abandoned pasture land. Sad.
    We have been in the market for a farm for the past year. Prices continue to drop here and we are going to wait until mid-2012 to start seriously looking again. We are in the position to buy but think prices will further drop.

  • Will believe it when I see it, where gov emp get layed off.

  • javadog

    Reasons to buy a house: (a) mortgage rates are low and likely to go up at the end of this year, (b) rents are going up, and (c) the age-old plan of paying off your home and living
    free of rent/mortgage payments (though you can’t escape property taxes).

    This week I’m submitting an offer for a townhouse with a mortgage that is well within my means. That assumes I can keep working, but software engineering is a good field in my
    area of the country (for now). In some fields, I believe corporate America is learning that outsourcing can cause more headaches than it’s worth.

    As michelle pointed out, many of the empty houses on the market are deteriorating. Overgrown lawns can be mowed but what about mold and mildew in the walls and cement? Leaking roofs, windows, door frames? I wonder if many of the houses sitting empty for years will have to be bulldozed.

    If you can afford it, and have a reasonable expectation you will keep working, go ahead and buy a home. Just make sure you can be happy living there for many years, don’t buy anything at the high end of your budget, and don’t expect to flip it for a profit. Pay down your credit cards and pay your debts on time; with a good credit score I was just pre-approved by Bank of America for only 3.5% down.

    Not bragging here, just sharing information I hope is helpful.

    Good luck to all.

  • mondobeyondo

    Back in 2006, my humble abode here in Phoenix was valued in the six figures.

    Today, it’s worth about $45K.

    (insert sound of WWII Stuka dive bomber here)

  • Patriot One

    I would submit to everyone that the stats. are much worse then reported by Zillow or Case/Schiller and heres why. Your local realestate agents are not changing the MLS sale price. In most cases you will see the list and sales price are the same and the rollup to the state and national boards is off by as much as 25 to 50%.

    One case I pointed out to a realtor was on a beach condo that sold. He pulled the listing and the list and sale price was $450K. When I pulled the tax records it showed the sale at $86k. That was off by what 78%?

    The top 5 banks are all trying to figure out a way around the MERS system which was to record the registration of the note owner. The problem is the MBS was repackaged and sold so fast that they were signed in blank. Oh and that peskie little problem about actually recording the note owner, well lets just say they have a really big problem. That’s not to mention that no one knows who blank is.

    While everyone is saying buy the great deals if you can now. I think you will be under water within 18 months no matter how good a deal you get. Here in Florida there is no hiding the fact that only 1 in 12 contracts is actually closing.

    But don’t believe me, just read how some of the good news numbers are being presented. ” Home Sales increase, signed contracts up 27%” A signed contract is nothng and no one makes a dime unless you actually have a closing and settlement.

  • Gary2

    We need cram-down. screw the banks. Need a financial tax on ALL wall street trades etc to help fund safety nets for people.

    Need to tax the heck out of the rich and start spreading the wealth.

    I can see someone has already beat me to the tax the rich line. This is good. People are leaning.

  • tyler

    Most Americans make less than fifty grand a year so to me this is good news. People might actually be able to afford a home. I feel sorry for all those who bought at the peak or refinanced. Don’t worry give it a few years and silver investors will be able to take most of these houses off the market.

  • KenA

    Great blog.I read the articles and comments daily.As a canadian i have watched with disbelief as our great friends to the south decline so rapidly.I believe that all politicians are in the game for one reason and one reason only(self gain).When the going gets tuff all they do is tax the lower class.Up hear in canada our economy is faring better than most. Unfortunatly most people don’t really understand that in a global economy, when one falls everyone falls.That is why this blog is so important.Many people around the world read these articles because this is one of a few places you can actually get the truth.Thanks mike for all of the great work that you do here.We keep you all in our thoughts and prayers.

    • Michael


      I appreciate the compliments and I very much appreciate the prayers. It is great to hear from a Canadian. I have been up to Canada several times and I always enjoy it each time I go.


  • Otown Right Guy

    What kind of crack are you guys smoking that would have you to be to believe in FED GOV LAYOFFS? You can’t even fire a $200K/yr government employee who surfs porn all day.

    Thanks to Golden Child for this link. You all should be OUTRAGED at this:

    Bernanke will keep the printing presses (or virtual printing presses) running at full steam.

    What we need are interest rate hikes. This would lower home prices more, but reward savers. It would make a down payment on a house lower and easier to accumulate with savings. But its not going to happen. As the Mogambo Guru would say, We are freaking doomed!

    Plant a garden. I recommend starting with a container garden. They are easier to start for the people with “black thumbs” like me.

    Buy PHYSICAL gold and silver.

    Buy a gun and some ammo. But be safe. Take an NRA course to learn the fundamentals.

  • The Unicorn

    Its sad but most homes in the USA are little more than fancy cardboard boxes.Just take a look at the pictures of the homes that were hit by that tornado in the southeast.I’ve actually been to several tornado sites and the buildings usually left standing are some 150yr old Church or a 200yr old log cabin.They may have some roof damage but other than that they took the direct hit and survived.The building codes actually make it impossible to build a REAL home that will last and be efficient.The best thing would be to fire all goverment employees involved in any kind of building enforcement,codes,permits,etc. What good are these goverment parasites,FIRE them and avoid paying any unemployment to this Thugs.The USA deserves better we know whats best for us and don’t need any goverment hack telling us how to build a home.

  • James

    Way back when, the U.S. government owned a lot of land, and it set up a program for homesteaders, and people who wanted to own some land. Now that the government owns a lot of real estate that it may want to get rid of. Why don’t they put up some of that real estate for homesteading? It would take a load off of the government for maintenance which it has to do if it wants to sell the homes anyway.

  • nakedguy

    or another thought , if you are retired and dont have a house why buy in the states? latin america is beautiful all year .

  • Morpheus

    Hey Frank,

    Don’t kid yourself. Canada’s housing bubble just hasn’t popped yet. The early 90’s will repeat itself.

  • Realist

    I can’t tell you how many mortgages I did for single people buying a 3000 sq foot McMansion during the period from 2000 to 2007. Mostly single women. What does a single woman need with a 4 bedroom 3 bath home?

  • Another good post on the mortgage mess. Thanks and keep up the good work.

  • Dinges

    As long as America keeps breeding half wits and allows ignorant Mexicans into this country we will continue to experience these financial disasters.
    Americans all want something for nothing, will we ever wake up?
    Keep on voting for these half-wit morons (read Democrat) on the left and you will get what you all deserve.
    Good luck to all and wait for the coming of the Lord.

  • The Man

    For the guy freaking out about a house being worth 29K in the 60’s and over 300K now… That’s a 4.69% compounded rate of return. Seems in line to me.

  • Matt

    The fact that a house is “underwater” is not that important if you consider that if the homeowner took on the mortgage, it was because he needed a place to live anyway and had an income.
    So the inherent value of the house is relatively unimportant since he’d have to rent something. Whether the cost of renting becomes a factor is when je does aqn analysis of the true cost of his mortgage after the tax benefits of being able to write off the mortgage interest. Since the mortgage interest is front loaded, that is at the early years, the benefit of buying may make the true cost of ownership lower than the cost of renting.

    The public outcry over underwater valuations is a form of buyers remorse, that is they’re angry at having been “taken” by overpaying for housing.

    But let me ask you, if in the early years of a mortgage the interest is highest, it goes right to the big banks, but if those payments are government subsidized through tax deductibility, then is that another form of of Washington taking public money and giving it to private institutions? BTW, those mortgages are guaranteed by our government with our money.

  • With commercial real estate leveraged so high and now with the value way down I can’t see how the banks get away without writing down these loans. When the true values come out I think you will see another down draft for banks in line with the REITs.

    Outsource your job search to us. Premium job search assistance –

  • Jason

    Gary says:

    Tax the rich (The producers) and spread the wealth to all the illegals and third world sewage rats who live of the rich via the welfare dole, free medical, social services etc.

    You see..That’s Gary’s idea of “spreading the wealth”….

  • Terry Pratt

    If you think owning a house is a bad deal, try renting. In my area, rents are up TEN PERCENT over the past year.

    I rent a room in a small crowded house with four others (we rent separate rooms independently of each other). The person from whom I rent has 500 sf to himself (the rest of us have 100-150 sf rooms) and the rental income allows him to live in the house for free.

    At least if you own a house YOU get to decide whom you live with. If you rent you might not have that option.

    People complaining about not being able to sell their home are in the wrong market. Stop trying to find a homebuyer, and rent it out instead, collect the rental income, and stay afloat until the selling environment improves.

  • Fashionable

    Why are people worried about mortgage payments? DON’T YOU KNOW you can strategic default and walk away from your payments?
    Why are people hanging onto mortgaged homes that are worthless and making them house poor and the bankers are getting rich?
    Are Home owners really that stupid?
    It is so in vogue and fashionable to default on your home, then to look like a sucker and continue to pay outrageous mortgage payments.
    I mean really now!

  • Rednano74

    Gary2 is a thief like all Democrats and most Republicans. You should be in JAIL.

    Barack is out promoting more subprime mortgage lending by forcing banks to give more loans to yet more people who cannot afford such.

    You people have been had! Due to the IRS tax laws, your homes are inflated by 20% anyway. Meaning, 1. you paid too much 2. you are paying more interest 3. your property taxes are more. This is all courtesy of big government promoting home ownership via the home mortgage tax deductions.

    Audit the criminal FED! Abolish the IRS! And let the market rebound. No one should be allowed to buy a home without 20% down.

    Ron Paul

  • David

    As soon as I stop breaking even on my rental house, I am mailing the keys back to the bank.

    Screw it all.

    Obama Sucks

  • cprice

    Faux Gary you cannot seriously believe that?? When was the last time that you ever heard of a poor person handing out paychecks??

  • cprice

    gary2 read my comment just above this one…

  • Glench

    A friend of mine and his wife just paid cash for a 250 grand house down in Arizona (same home would cost them about 3 times as much where he’s at)…

    He mentioned to me something quite disturbing though, that I’m hoping you economic dudes might clarify for me… but what my friend told me was that the banks were making a killing on the foreclosures… they receive joe taxpayer backed government insurance of 75,000 bucks on each home the ‘have to’ forclose on… whatever payments the bank had received from the homeowner are pocketed… then the bank relists the home…

    I’m at a complete loss over this 75,000 payout in ‘insurance’ the banks receive from the federal government ???

  • TrishaD

    #22: The company I worked for went bankrupt and I could not find another position. We worked very hard to get a mortgage modification. We finally succeeded…but here is the catch. We got a payment we could continue to make each month but they gave us a FORTY year mortgage and that was the only way they would work with us. So I don’t know how many folks are in this boat but I do know this…every extra penny I have will go toward this mortgage and if I EVER get it paid off, I will NEVER have another one. The American public – SCREWED at every turn! Thanks Washington DC

  • For those suffering from the housing blues, rather than lose your home in foreclosure, why not let our investors purchase it, do a lease-option with you at a lower rent, and when you’re back on your feet, you can repurchase. Find out how.

  • Bill

    What I have done is buy a home outright in Florida for less than 50K. Needed some work, which I am doing, using some family help as well. No mortgage. Our parents got 15 year mortgages, sometimes 20 years, then paid them off in full. Our grandparents or great grandparents saved and bought outright. Wouldn’t you prefer to own your home, rather than a nameless (or even unknown bank) owning it?

  • luca signorelli

    I love this housing quagmire.

    I refused to pay my mtge well over 14 mths ago, am on my third loan modification (which cancelled a pending foreclosure, now they will have to start over again and I get another free four months), why? Because the bank screwed me and lied to me, and continues to do so.

    Had they lowered my mtge payments back in late 2010, they would have had money each month; but noooooo, their low level cement headed employee drones took the moralistic high ground and decided to wreak havoc with me; surprise, they picked the wrong attorney to screw.

    Their real surprise awaits them once the foreclosure is completed at the auction; what a mess this place is in, and they have not done their due diligence, either.

    Ah, the crumbling empire is all about us; I sit back and enjoy the morons at work spinning lies to the sheeple of this once great, now downtrodden country.

    Oh, well: c’est la vie.


  • C

    I would consider purchasing again, except most homes on the market are junk, just like the one I bought and sold, the taxes on that one were $3600 a year. I’ve seen homes bought and sold so many times over, once it’s finally foreclosed, they just start the process all over again. It’s the new normal, probably be awhile before that changes. But, like the realtors say, buy a home while you still can, or you’ll be priced out of the market forever.

  • Life in general is getting more serious every day. The days of collecting hundreds of precious moments figurines and fancy beer cans is over. Get yor priorities in order, think smart, stop buying $400 Lakers tickets and trim down on those toys. Of course those of you who are dripping in money need not be concerned.

  • Phil

    UK resident. If I didn’t know any different, I could be reading an article about the housing market in the UK! The only difference being the statistics – albeit I’m sure our statistics are just as bad. What an absolute mess the whole housing market is, not just in the USA or UK but globally. China next!

  • Thom

    Yes, the pricing has dropped 33% so they say but that doesn’t mean squat since the rise and risk was double that in my view. Let real estate crash through the floor. I rented I saw this coming.

  • Howard Lee

    America and much of the west has ended their growth phase and has entered the trading phase of capitalism. Which means not too much new job creation but the franchise name companies will survive fine. This also means taking long term positions in any asset is too risky especially illiquid ones. Too many negative forces at work. Money will flow quicker and quicker to the new hot investment but most new companies and ideas will quickly fail.
    On one hand you have the high wages in Europe and North America vs. the low wages in South America, Asia and Africa. With a world economy and free movement of work then it would seem the “west” standard of living will drop to seek parity with the third world countries. Also at work is the consumer who demands the lowest price in their attempt to maintain their standard of living in their stagflation economy. Good for the “east” but bad for the “west”. It’s every man for themselves with no thought given to their neighbor’s job. Our forefathers would turn over in their grave if they saw what America has become.
    What does this mean for housing? I see a long period of stagflation, with rents going up while housing prices going down until they come in balance. This means the buying power of wages will drop and housing costs to take a higher percent of take home pay in the future. If companies continue to not give cost of living increases you will know this scenario is coming to be.
    Get liquid, lower your cost of living, learn new skills, and prepare to be flexible. Building your future depending on the government will not work out well for you. The self reliant will survive and prosper. Even the dumbest in our society will eventually figure out that people have to be responsible for their own actions or lack thereof. The future civil unrest will be between the achievers and the parasites. It will be quite a war.

  • John Lock

    For 150 yrs now, the unintelligent have been led by the nose by the corporate/statist parasites. Now they’re starting to wake up.
    The excess wealth created by generations of savings has all been squandered by Governments the world over, and very soon the shortages are going to become apparent.
    I’m talking about no food in the shops, no gas for our cars, not enough police to control the civil unrest that is bound to follow. Evolution will sort it all out. If intelligence is really an advantage, the unintelligent will be largely wiped out. If not, animal force will triumph, and it will become apparent that democracy is a failed experiment.
    Socialists need to wake up to the fact that if the ‘rich’ are smart enough to have exploited the poor in the first place, resorting to force via Parliament/Congress to redress the balance will only encourage the rich to do the same. And since they’re smarter to start with, you’ll end up with the situation we now have, where the rich have stolen all the wealth from the not-so-rich, through manipulation of the political system.
    The only answer, if you haven’t been born rich, is to work your way out of poverty. The Govt., run by the rich, isn’t going to do it for you.

  • bobbobbobbob

    just think we would be if mcpain would be pres gm dismantled and sold for scrap keep believing the republican shit u dam fools

    • BHO is a Bastard Child

      Enjoy your Obama ********* while you still can.

    • T

      Spoken like someone with no education and utterly dependent upon those who work, are taxed, and provide your daily bread.

    • Carl Campbel

      Gee bobo,uh it might possibly be interesting to hear what you have to say (doubtful), but do people have time to try to decipher your illerate “code” or whatever that is you write? Get a clue (education). This goes not only for you bobo but the miriad of sloppy and /or illiterate writers that litter the internet. These kinds of posting are found on virtually ALL forums. Maybe they think it is cute or funny to slop something down- hmmm?

  • Mannie

    to Howard Lee:
    You’re such a fool, man. Ha-ha-ha. I am reading your post and LMAO. “It’s every man for themselves with no thought given to their neighbor’s job.” Oh yeah?

    Why don’t you start the movement, to pay the outrageous prices, as long as the seller is your neighbor, and, of course, to charge outrageously, as long as the buyer is your neighbor (one follows from another)?

    This is the result of people like you with their “buy American” cry. This is what happens when you neglect capitalism in favor of socialism.

    And don’t lay down this BS about “the trading phase”, as you know nothing about capitalism, it is evident from you addressing this socialist-corporatist-governmentalist system as capitalism.

    The problem is that there is no capitalism. And the reason for that is the democracy and universal suffrage. Assuming for a second that there is no dead end debt, no fiat money, no out-of-control regulators, no corruption, and no government schools, you would still not be able to solve any problem, because they are theoretically unsolvable for as long as there is the democracy.

    What is going on is simply a reality catching up with theory. Like Keynes said:-“In the long run we’re all dead”, well, here is the long awaited “long run”. Enjoy, you’ve voted for it!

  • These facts are so true! Food stamps are up 18 million households since Obama took office!!!! These so-called leaders do not know their head from a hole in the ground. I downsized and lost three homes. Now is a good time to buy something with all cash. Americans know the media is lying to them, food costs, energy cost, clothing costs are all going through the roof. Inflation is here. Prepare for more inflation, Obama looks like Jimmy Carter on Steroids! Obama is a narcissist and only cares for himself!MJ

  • David Notestine

    What happens to mortgages when the dollar completely loses it values? They talk of debt liquidation – what does that mean?? For governments, banks or the little guy? If I have a house now will my debt be forgiven or maybe I’ll be able to buy a house for an ounce of gold 🙂 or ammunition or other barter goods. What happens when renters have nothing to pay with? Or mortgage holders? Is there any history to study for something like the economic reset looming on the future?

    • Carl Campbel

      To David Notestine

      Hey Dave those are some really good questions and observations, for sure! The trully chilling part of you question has to do with what you said “what happens when the dollar completely looses its value”. It pains me to announce that that dollar has in fact completely lost its value.It is a “dead duck”. Dave,I would estimate that the serious demise of the dollar started around the end of 1990s or 2000. The housing price bubble, using homes as a “credit card” and finally the macabre “Subprime”lending debacle put the death nail in the dollar. This morning I am going to go fill my car-up (about $50 or $60). I will be going to the coin shop to look at 1-ounce gold coin (about $2000-$3000). After I am going to stop for a nice cup of coffee at a cafe (about $2 or up to $4 for fancy type).

  • ZBK

    A home/condo/unit or any other real property that comes with a home owners association has zero value. Its value is $0.
    Home owners associations are nothing but legalized crime on the American people.
    Stay away from any property that has a “Home Owners Association” and a HOA fees.
    The HOA fees will keep going up till they swallow you alive.

  • What can Americans do to fight the New World Order?

    1. Turn off or throw away your T.V.
    2. Think for yourself.
    3. Question all so-called ‘Authority’
    4. Get out, and/or stay out, of debt!
    5. Use cash, trade or barter as much as possible, rather than debit cards and credit cards
    6. Get rid of grocery store ‘discount’ cards –grocery stores provide this information to insurance companies.
    7. Bank at a Credit Union, or any alternative to the ‘TBTF’ Banks, that participated in the 2008 Banker Bailout.
    8. Invest as much as you reasonably can in precious metals – especially silver.
    9. You have the right to own a firearm, to protect yourself,and your family. Read the 2nd Amendment.
    10. Buy products “Made in America”
    11. Start your own garden
    13. Meditate or pray – reduce your stress!
    14. Get exercise!
    15. Read a book (here is an excellent book recommendation: Psychological Warfare and the New World Order:The Secret War Against the American People ) The EU/US Central Bankers have two openly declared goals: 1) Global Neo-feudalism, via debt, for Nations and Individuals, and profits for Central Bankers, & 2) Global De-population. Yet, in the MSM, there is still an argument that there are TBTF (Too-Big-To-Fail) Banks????? How stupid are people?
    16. Listen to soothing classical, jazz, ambient, or other alternative music
    17. Watch ‘Freedom to Fascism’–a film by Aaron Russo (can be found here:
    18. Watch ‘Why We Fight’–a film by Eugene Jarecki (can be found here:…r_embedded)
    19. Watch ‘Endgame’–a film by Alex Jones (can be found here:
    20. Below is advice from John Perkins’ book, entitled THE SECRET HISTORY OF THE AMERICAN EMPIRE (The Truth About Economic Hit Men,Jackals,And How To Change The World), pp. 322-329.

    “AVOID SHOPPING AS ‘RETAIL THERAPY’ (Instead, jog, meditate, read, or find some other solution).
    SHOP CONSCIOUSLY – if there is something you must have, purchase items whose packaging, ingredients, and methods of production are sustainable and support life.
    PURCHASE AT CONSIGNMENT AND THRIFT STORES –where everything is recycled.
    Write letters telling Monsanto, De Beers, ExxonMobil, Adidas, Ford, GE, Coca-Cola, WALMART, and other labor exploiters and environment destroyers
    DOWNSIZE (your car, home, wardrobe) – everything in your life (and don’t buy what you don’t need)
    SUPPORT/SEND MONEY only to non-profits, radio stations, and other organizations that promote JUST causes.
    VOLUNTEER your time and energy to such organizations.
    ENCOURAGE stores to buy from local growers, producers, and suppliers.
    Shop at your LOCAL FARMERS’ MARKET
    AVOID DRINKING WATER THAT IS FLUORIDATED (only your toothpaste should have non-industrial fluoride)
    INSIST that those who use your money – banks, pensions, mutual funds, companies – make socially and environmentally responsible investments.”
    21. Invest in precious metals (especially silver).
    22. Research every company whose products or services you buy
    23. Research every organization to which you donate your hard-earned money
    24. Vote with your dollars!
    25. Watch ‘The Secret of Oz’– a film by William T. Still (can be found here:
    26. Get prepared for when the U.S. dollar TOTALLY COLLAPSES – You’ll need 1) Water, 2) Food, 3) Vital Medicine 4) First Aid Kit, etc.
    27. Global, non-violent, NON-COMPLIANCE is the answer, of We the Plebs, to the ‘elite’ New World Order!
    28. Find alternatives to EVERYTHING that they’ve set up, to entrap you in THEIR system.
    29. What would happen if 200 MILLION AMERICANS refused to pay their taxes, in 2012? (Just a hypothetical question)
    30. Familiarize yourself with the concept of BOYCOTT
    31. Corporate Membership in the CFR (Council on Foreign Relations):
    32. Don’t ever join a ‘secret’ society
    33. Watch ‘Global Warming or Global Governance’ ( )
    34. Educate yourself. Thomas Jefferson: “If a nation expects to be ignorant & free, in a state of civilisation, it expects what never was & never will be.”

    Expand the above list,and share it with everyone you know!

  • Margaret

    Zillow as the authority on real estate? Everyone knows they are so far off. Please a better authority than them.

    If the wealth of the world was divided into equal portions for every adult 21 years of age and older within one week there would be millions of inequities. Shares sold for drugs, alchol, out of stupidity, etc. Capitalism has been proven over the centuries to be the best form of government for the most people. There will always be loosers and winners, rich and poor because all people’s brains are not created equal.

  • Do you know WHY this is happening to America? It’s happening BY DESIGN. EU/US Central Bankers are the enemy of people, everywhere around the world:

    Keiser Report: Mass Psychosis (E167)

  • Yann

    Superb article

  • Lisa woodbridge

    Not to worry, looking at the number of rich and famous people that have recently bought villas on the french riviera or luxury apartments in Paris (Elton John, Bono, Johnny Depp, Angelina Jolie and Bradd Pitt etc…), it looks like wealthy americans and others are going to where the market and the prices are still raising. For example, look at this company which takes care of most celebrities and wealthy people real estate sales in France ( ), their catalogue proves that when you are rich and famous (or both) there are still a lot of investments opportunities around the world. As for the rest of us…

  • Ola! Theeconomiccollapseblog,
    In addition to your post I was wondering, There was a time when about the only way most people could sell their house or property was to list it with a realtor. With the advent of the internet in the 90’s and powerful search engines online there has been a whole new world opened to those who want to buy and sell. The realtors and brokers still have a lock on the MLS and they are constantly pressuring congress to change real estate laws that favor them over an individual. However, times are changing.

    • mike

      and…….finish your story……

  • V

    If you look at zillow and look at the homes that are not in foreclosure or “preforeclosure”, you will see how the price of the homes went back up as the federal reserve provided ‘liquidity’ thru “Quantitative Easing” policies. Sometimes those prices went right back up to where they were before the crash or even higher. This is a total delusion of what is ‘value’. The house I had sold in 2006 for $253k is supposedly $437k today, the freaking place was built in 1958 and sold for $11,800 then. Zillow is not trustworthy though can be useful. I expect in another year, after the eurozone ponzi collapses, the housing market will collapse again with considerably more force. The number of homes being withheld from the market by the bankers is on the order of 7 years or more of what used to be normal home sales. Ugly reality it all is.

  • Dave

    ANYBODY CAN DO A “QUIET TITLE” ON THEIR HOUSE! Many community banks have sold the title and they do not have it to show!!!

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