Homes Prices must fall before we have a chance for recovery

The U.S. housing market is now slightly undervalued after rapid price declines have overshot fundamentals, economists for IHS Global Insight said Wednesday. Yea right, and do we believe anything an economist would tell us? Not in this office.

House prices fell at a 6.9% annual pace nationwide in the third quarter, with prices falling in 241 of 330 metropolitan areas. Prices are down 6.5% from their peak in 2007.

Does this really shock anyone? In fact I would suggest we hold on tight if this has scared us because we ain't seen nothing yet.

In Denver, we have been late in prices faling and yet we will probably fall the worse due to the fact that homes have been extremely overvalued and priced for the past five years. Not to mention the quality of what is being built, really poor. It is amazing that anyone would buy a house at $200 sq ft in Denver. Have people here never been out of this part of the world to see what they are missing. Go to the south and see what real quality is and then come back and start demanding more from builders and real estate companies to treat the consumer fair. We have to regualte our own indutry and get rid of the greed. After all look where it has gotten us.

It is obvious that weak economic conditions and wary consumers continue to hold the housing market back and yet some areas are seeing some increase but that is due to foreclosure sales. A real false number.

Warning : As long as house prices stay as they are today there is no chance of the market recovering. So watch for prices to tumble and reach levels of the 80's or we might just be crying in the year 2010 and after for a while.

Sure it sounds scary but maybe we built this monster with over pricing the market and not demanding that builder give us what we should have for the price they are charging. We must regulate our own industry or our industry may be taken over by this socialist administration. And then who do we have to blame.

Maybe some of us would enjoy working for a min wage and selling houses as a government representative. So think about it and let's get the market in line with the ratio of buying vs renting. At this time renting looks a lot better until home markets come down to a reasonable level.

Best to you...