Welcome To Hotel California
June 30th, 2008 by 
reality
The median price paid for a single-family home in the state dropped by almost $210,000, from $594,530 in May 2007 to $384,840 in May 2008, the association reported. That drop represents a decline of $3,800 per week, or $549 per day, and is the highest ever measured by the association. The price decline appeared to be accelerating from April to May, as median prices dropped by 4.7% in that period.
Wow.
Posted in Real Estate | 
June 30th, 2008 at 2:18 pm
That is a wow. I’d almost be interested in seeing the numbers tied to the existing mtg balances. I wonder how many additional houses go under water each day.
My trick knee tells me that it’ll continue another year at a slower rate, bottoming out at around $275,000. The good news is that Big Ben will get the mtg rates down to %4 or so in order to get people to borrow again.
There’s a small chance we’ll become Japan with almost a 0% rate (aka free use of money).
June 30th, 2008 at 2:29 pm
I’ve said before and will say again that I expect to see Japan’s ZIRP (Zero Interest Rate Policy) implemented by Bernanke-san.
June 30th, 2008 at 4:54 pm
Ben and his cronies are powerless at this point. Even 0% interest won’t prevent the coming implosion. The Fed caused these problems in the first place. I wouldn’t want to be Bernanke for all the tea in China. He’s gonna end up presiding over one of the biggest economic collapses in history. IMO, we’re MAYBE at the bottom of the second in a game that’s gonna go extra innings.
July 1st, 2008 at 4:44 pm
The real interest rate is already below zero. Lowering rates won’t have any effect except destroying the already ailing dollar, ending fiat currency in the USA and pushing the USA into bankruptcy.