Graph of the Day for January 21, 2010

Randall Hoven
"The housing sector is now at the root of three distinct but related problems:  First, a sharp decline in house prices and the related fall in home building that could lead to an economy-wide recession; Second, a subprime mortgage problem that has triggered a substantial widening of all credit spreads and the freezing of much of the credit markets; And, third, a decline in home equity loans and mortgage refinancing that could cause greater declines in consumer spending."
Martin Feldstein, September 2007.




























Sources: 
Global Property Guide, IMF World Economic Outlook 2009.






Hoven's Index for January 21, 2010


Average housing price growth in the US for recent years (3rd quarter to 3rd quarter)

by ending quarter:

3rd quarter 2009:  -3.8%

3rd quarter 2008:  -6.5%

3rd quarter 2007:  +1.1%

3rd quarter 2006:  +5.0%

3rd quarter 2005:  +9.5% (peak)


Source: Federal Housing Finance Agency, House Price Index.


Graph of the Day Archive.
"The housing sector is now at the root of three distinct but related problems:  First, a sharp decline in house prices and the related fall in home building that could lead to an economy-wide recession; Second, a subprime mortgage problem that has triggered a substantial widening of all credit spreads and the freezing of much of the credit markets; And, third, a decline in home equity loans and mortgage refinancing that could cause greater declines in consumer spending."
Martin Feldstein, September 2007.




























Sources: 
Global Property Guide, IMF World Economic Outlook 2009.






Hoven's Index for January 21, 2010


Average housing price growth in the US for recent years (3rd quarter to 3rd quarter)

by ending quarter:

3rd quarter 2009:  -3.8%

3rd quarter 2008:  -6.5%

3rd quarter 2007:  +1.1%

3rd quarter 2006:  +5.0%

3rd quarter 2005:  +9.5% (peak)


Source: Federal Housing Finance Agency, House Price Index.


Graph of the Day Archive.