January 11, 2011
You know how the media LOVED to say “this is the worst economic downturn since the Great Depression”? Well, now they officially have a metric that is WORSE than the Great Depression.
Okay, okay…so 25% of the population isn’t unemployed and we’re not all standing outside of soup kitchens. BUT, Housing prices in the US fell for the 53rd consecutive month (that’s like…four and a half years). And they’ve now taken a fall that is worse than the comparable figure from the 1930s.
According to the Financial Post:
Home prices have fallen 26% since their peak in 2006, exceeding the 25.9% drop registered int he five years between 1928 and 1933. Prices fell 0.8% over the month [of November].
And in the 1930s, the government wasn’t as keen to help out the market as they are today. They didn’t have such a Keynesian approach. A plethora of bones have been thrown to the housing market– but none are getting the real bite needed to spur a recovery.
And despite better employment numbers, the chief economist for Zillow said that these positive economic indicators will take a while to materialize in the housing market. So, hang in there, US homeowners. It’ll turn around. But for now, I guess the only thing to enjoy is being a part of history. Woooooo…