US Housing Crisis Is Now Worse Than Great Depression


It’s official: The housing crisis that began in 2006 and has recently entered a double dip is now worse than the Great Depression.

Prices have fallen some 33 percent since the market began its collapse, greater than the 31 percent fall that began in the late 1920s and culminated in the early 1930s, according to Case-Shiller data.

The news comes as the Federal Reserve considers whether the economy has regained enough strength to stand on its own and as unemployment remains at a still-elevated 9.1 percent, throwing into question whether the recovery is real.

“The sharp fall in house prices in the first quarter provided further confirmation that this housing crash has been larger and faster than the one during the Great Depression,” Paul Dales, senior economist at Capital Economics in Toronto, wrote in research for clients.

According to Case-Shiller, which provides the most closely followed housing industry data, prices dropped 1.9 percent in the first quarter, a move that the firm interpreted as a clear double dip in prices.

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No chart?
This one shows that, since Obama took office his two stimulus give aways for new home buyers led to tiny bumps up in sales.
But, as every economist predicted, these were sales brought forward (thanks future!) so that afterwards sales are way off.

All those BILLIONS wasted for a tiny artificial bump in sales!

This one shows that
existing homes sales also suffered.

But were housing “values” over inflated prior to the depression, as they definitely were before this crisis? I don’t think so.