I’m sure we’ve all heard about The Great Depression. It was a horrible time, not only in our nation’s history but throughout the world. Prices went crazy and suffering was the norm. But did you know this, home prices dropped 31% during The Great Depression.
Guess how much home prices have dropped in the United States from the highes of 2006? 33%.
Not the best time to be selling your home, right?
This author believes the double-dip recession is already here: Housing’s Latest Double-Dip.
In some ways, the collapse in house prices is even deeper than Case-Shiller is telling you.
After all, the official data take no account of inflation. During the Depression we had deflation so while your home was worth fewer dollars, each dollar was more valuable.
As in every change, there are people to lose and people who gain. With home prices at historic lows, tomorrow’s winners will be buying real estate today.