A pall has established over the U.S. housing market. The first-time home buyer's credit has dried up, and home prices are down 29 percent from their 2006 peak. On Dec. 9 the newest release of the Federal Reserve's Flow of Funds data shows the value of proprietor equity in the third quarter of this year at $6.4 trillion—52 percent lesser than four years ago.
Real estate values have been downward so long they may be looking up, says Chris Farrell. In particular if you're patient—and price raises returns.
Judging by the educated consensus at holiday parties—where homeowners trade sorry tales of submerged mortgages and bleak sales—don't count on things getting better in months to come. Hanging over the market is a worrying combination of a weak economic recovery, near 10 percent unemployment rate, an inventory of 8 million or so concerned properties, and uncertainty over the legality of foreclosures by major finance loan servicers.
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