Decline in U.S. housing now greater than in Depression

An ugly milestone as home values sink 26 per cent from peak

It's only ugly if you took on too much debt, or were counting on cashing out and downsizing - the boomer fantasy turned nightmare. If you're young and just starting out, this is good news. For the first time in decades home ownership for young people is a real possibility and not just a distant dream. Of course they'll have to stretch - wages today aren't what they used to be, but at least now they have a shot. Add to this that home prices will probably be stagnant for years, and there's no incentive to over-leverage or borrow against inflated "equity." People will have to live within their means for a while. This too is a good thing.

I guess it's bad though if you were counting on flipping condos or pedaling toxic MBS's to unsuspecting pension funds for your retirement. Yeah, I feel really sorry for those people.

ebear