The double-dip in home prices intensified as the “sucker’s rally” created by Barack Obama’s failed housing bailout evaporated and the economy continued to sputter according to data released by the home price analysts at Zillow.
It appears that all Obama’s wasteful $22 billion in spending on the Making Home Affordable program did was artificially push up prices for a little while, causing even more people to buy into houses with inflated pricing and wind up underwater when the mini-bubble created by the program burst. Now, 28% of homeowners are “underwater,” owing more on their houses than the houses are worth. Since this is a recession caused by a mortgage crisis when the first housing bubble imploded, we’re not going to come out of the recession until housing prices stabilize. That would have happened by now if it weren’t for the additional problems created by Obama’s failed economic policies.
On the bright side, Obama did watch Osama bin Laden die on television. So there’s that.
New data just out from Zillow, the real-estate information company, show house prices are falling at their fastest rate since the Lehman collapse.
Average home prices are down 8% from a year ago, 3% over the quarter, and are falling at about 1% every month, according to Zillow.
And the percentage of homeowners in negative-equity positions — with a home worth less than its mortgage — has rocketed to 28%, a new crisis high.
Zillow now predicts prices will fall about 8% this year and says it no longer expects the market to bottom before 2012.
“There’s no way we can get to flat, from these depreciation levels, in the last nine months of the year,” says Zillow economist Stan Humphries. “Demand is a lot more anemic than we had previously thought.”