Is really the housing market too bad?!

According "New York Times", "The value of single-family homes plummeted 10.7 percent in January compared with a year earlier, as measured by the Case-Shiller index, a closely watched survey of 20 major metropolitan regions". But the same news paper did not say how much the value of single famely homes has increased between 2001 and 2007.

Lets take a look on how much the houses has been appreciated between 2001 and 2007. For Las Vegas appreciation has been over 100%. For the last 12 months ending in January the same area lost 20% in value or for the same period the average price for Dallas has declined with 3.3% versus average 5 - 6% appreciation between 2001 - 2007.

Looking at the last 25 years in real estate there have been fluctuations, but overall prices have increased. We had times of price depreciations from 1988 to 1995 when the inventory of homes increased significantly. Inventory has been low since 1995, and therefore prices have increased. We currently are beginning to se signs of similarity to the 1988-1995 era showing high inventories compared to sales. Home prices move up or down depending on the supply of houses


As a commodity real estate has its ups and downs just like the stock market and after get to the tipping point the market will go up. This is nothing unusual, just a normal cycle.