House Prices Hit Post-Bubble Low

0 Posted by - February 2, 2012 - Career & Business, Economics, Money

homeprices.JPG 300x200 House Prices Hit Post Bubble LowSince the depths of the recession, key aspects of the economy have rebounded. The nation’s output has grown. The stock market began an ascent. The unemployment rate drifted down.

But housing?

When it comes to the value of what many Americans consider their biggest financial asset, no such return appears in sight.

Data released Tuesday showed that seasonally adjusted housing prices have reached a post-bubble low, as the minor surge that began in 2009 fizzled, to be followed by the almost continuous slide of the past 18 months.

The housing bust, in other words, appears to be even worse than it was at the nadir of the recession.

For millions of homeowners, that’s an unsettling reality, and potentially an issue in the presidential campaign. But the damage may be far more widespread.

By making people feel less wealthy, according to economists, the decline in home values inhibits consumer spending and hampers the nation’s stop-and-start economic recovery.

“The trend is down and there are few, if any, signs in the numbers that a turning point is close at hand,” said David M. Blitzer of S&P Indices. “I spent the weekend scratching my head and saying, ‘Isn’t there some good number in here?’ ”

CONTINUEd at the Washington Post.

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