Tuesday, October 30, 2007

Housing prices take another tumble

Housing prices fell in August for the eighth month in a row and took the biggest decline in 16 years.

An index of 10 U.S. metropolitan areas fell 5 percent in August from a year ago. That was the biggest drop since June 1991. The lowest ever was a decline of 6.3 percent in April 1991.

Meanwhile, consumer confidence took a tumble, to the lowest point since just after Hurricanes Katrina and Rita in 2005.
I’m still waiting for presidential candidates to address the housing issue and possible recession more, and when they do discuss it, to do something besides offer a simple, guilt-free bailout. Remember, many subprime mortgages were not the lessee’s first home to buy, and in some cases, were even used to buy second or third homes as investment properties.