Thursday, February 15, 2007

House Prices in Record Collapse

The slump in home prices was both deeper and more widespread than ever in the fourth quarter, according to a trade group report Thursday.

Prices slumped 2.7 percent in the fourth quarter compared to the fourth quarter of a year earlier, according to the report from the National Association of Realtors. That's the biggest year-over-year drop on record, and follows a 1.0 percent year-over-year decline in the third quarter.

Debt levels are at highs. The two facts are of course very linked. When the middle class get raises below the level of inflation while corporate America keeps all the financial gain of productivity, this occurs.