Wednesday, April 30, 2008

$6,000,000,000 in housing wealth up in smoke

That is more then a day's pay for certain.
A Washington think tank is warning that housing prices are falling at an accelerating level, destroying wealth at a pace that will cost the average homeowner $85,000 in lost wealth this year alone.
The projections by the Center for Economic and Policy Research are based on the numbers in Tuesday's Case-Shiller home price index, which showed accelerating price declines in most big cities.
The annual rate of price decline over the last quarter was 24.9% in the 20-city index and 25.8% in the 10-city index
the center said in its Housing Market Monitor today.
the rate of price decline in the 20-city index would imply a loss of almost $6 trillion in real housing wealth over the course of the year
The CPER says prices are falling so rapidly that the bubble will be gone by the end of 2008, but the loss of housing wealth will be massive.
Peter Viles
Peter Viles, senior producer for Real Estate at
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