Peak in real estate price boost from government spending
The government-sponsored housing price bounce has reached its peak.
Housing prices have likely realized as much benefit from government home-buyer credits as they are going to.
Source: SoldAtTheTop
The extra-seasonal, government sponsored housing price bounce having reached its peak, in terms of pricing, in most markets in mid-summer of 2009 now appears to have nearly reverted for some.
The Radar Logic home price data now indicates that nine of the most corrected of markets are continuing to correct even after all the government propping.
This presents an unequivocal bump in the road of the supposed “V” shaped economic recovery as a significant “housing recovery” disappointment shapes up over the next few months.
The following rollup (click for larger) shows the regions that have nearly completely reverted from the summer 2009 price peak to break the prior lows seen in March or 2009… some even dropping to series lows, resting at levels not seen since the late 1990s.
Note that I added “value” loss for homes purchased at the summer peak and costing either $200K, $300K, $400K and $500K… all losses are well in excess of the senseless $8000 government carrot tax “credit”.
Click this link for nine Blytic charts for each of the nine popped markets.
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