A Record Drop In Home Prices

Washington Post ^ | October 26, 2006 | Kirstin Downey

[GodGunsGuts]

The price of existing homes last month fell 2.2 percent, the largest monthly decline in the almost four decades the number has been tracked, according to an industry report released yesterday.

Nationwide, the number of existing single-family homes sold fell 14.2 percent in September compared with September 2005, according to the report from the National Association of Realtors. The number of sales has fallen each month since March.

Prices fell everywhere in the country, with the Northeast and West most affected. Declines were more moderate in the South, which includes the Washington area....

[GodGunsGuts]

I should have said, THEY ALL HATE GOLD, just like you.

[Petronski]

That's some crowd you run with, Gigi, badmouthing the economy at every move, trumpeting every morsel of bad economic data.

It's almost like Howard Dean has his hand up your dress.

[Fan of Fiat]

Prudent Bear is among the best of them

Prudent Bear Fund; No Load Shares (BEARX)

Wow, the Prudet bear is really kickin' some tail.

[Drago]

"David W. Tice" who runs the gold-peddling "fund" at PrudentBear.com apparently hires people who think G.W. Bush allowed 911 to happen! Look at #3 "Signatory" at this link:

http://www.wanttoknow.info/911statement

Also, this link:
http://www.rockymountainnews.com/drmn/nation/article/0%2C1299%2CDRMN_16_4889964%2C00.html

[Petronski]

I should have said, THEY ALL HATE GOLD, just like you.

I don't hate gold, I hate predatory sales pitches that misuse economic information (or lie outright about it) to pimp gold.

[Leftism is Mentally Deranged]

Instead of saying that this makes houses more affordable, the media is saying that people still can't afford to buy.
Obviously they are trying to get dems elected.

[Petronski]

That's one of Gigi's favorite sites. He runs in league with those nutjobs, badmouthing the economy, exaggerating economic data, pimping fear, uncertainty and doubt.

Gigi a LIHOPper? Somehow that's just not so hard to believe.

[Torie]

The rental market is driven by income levels, and of course supply of housing vis a vis population (and in SoCal there is not much buildable land left in the LA Basin and Orange County, and some industrial areas are being converted to housing, at great expense). The rental market did tank in Socal in the early 1990's (by about 20%) due to a severe recession, driven by deep cuts in defense spending mostly, and a bump up in interest rates. I do worry when housing prices for smaller homes get out of wack with rental rates, and the cap rates get too low vis a vis longer term interest rates (say the 10 year treasury rate). That is what happened in the late 1980's in California, and that combined with the severe recession (a white collar recession by the way, that affected even moi), led to the 35% or so housing price decline from the 1989 peak.

Compared to that period, cap rates are higher vis a vis treasury interest rates, and the economy much stronger. To equate the two is to conflate apples and oranges.

[Petronski]

You can certainly understand why someone might want to conceal the domain name.

[Drago]

"LIHOPper"??? Clue me in! ;-)

[GodGunsGuts]

Their time will come again (in fairly short order):

Total Return for Period Including Market Decline

11/28/02-3/11/03 1/05/02-10/09/02 5/22/01-9/21/01 3/25/00-4/04/01 7/17/99-10/15/99

BEARX +13.48% +88.24% +61.93% +75.90% +28.12%

S&P -14.24% -32.94% -26.11% -26.91% -11.80%

NASDAQ* -14.55% -45.90% -38.27% -66.98% -4.63%

*Excludes dividends and their reinvestment. Returns would be higher including dividends.

[Petronski]

One of the Let It Happen On Purpose crowd, as opposed to MIHOPpers, who believe the President Made It Happen On Purpose.

[Drago]

Yeah...PrudentBear sounds like something I would hear advertised on George Noory's "Coast-to-Coast AM". Having some gold in your investment package isn't a bad idea...I just go to a reputable dealer to get it.

[Petronski]

Their time will come again (in fairly short order):

No doubt part of the next leg up of the Great Gold Bull.

If a bull lifts his leg, the gold that comes out is NOT going to be a precious metal, but it WILL make yellow snow.

[Drago]

OK, got it...thanks! (LIHOPer)

[Petronski]

Having some gold in your investment package isn't a bad idea...

Of course not.

But the hyper-spastic goldbuggery you find, yes, on late-night talk radio is laughable--or would be, if it weren't so potentially damaging.

[Fan of Fiat]

That's funny! When is the next three month period that they'll do well so I can be sure to get in?

[GodGunsGuts]

==I don't hate gold, I hate predatory sales pitches that misuse economic information (or lie outright about it) to pimp gold.

Oh, I get, you're talking about someone else. I have never made any sales pitches for a gold dealer (let alone a predatory sales pitch!). I just stand up for my investment decisions. They have paid off every year for the last five years, and as I explained to Toddler, I still ahead this year too. Your pack of hyenas are the ones that keep bringing up gold. In case you haven't noticed, I am primarily focused on posting articles about the housing market. That is, until you and your fellow hyenas arrive. Once you guys get here, the first thing you i***t savants bring up is gold, Gold, GOLD!

[Petronski]

When is the next three month period that they'll do well so I can be sure to get in?

Technical analysis will make it clear!

Oh, and disembowel a chicken, too...

[Petronski]

LIHOP or MIHOP? Where do you stand?