First they had this graphic from 1890 to present day (in 20 yrs steps) along the bottom and Thousands of Dollars (lowest to highest) along the Y-axis in increments of 20 from 60 - 200 ... the chart title: History of Home Values.
(values adjusted for inflation)
In 1900 house value was worth: it ranged from about 85,000 - 125,o00 going up & down until WW1 (that's about what, 1915 or so?) government steps in....
WW1 house value: went from about 100.000 - 65,000 - 80.000 by the great depression ... yes you read that correctly the lowest point came around 1925 or so, well before the Great Depression.
Great Depression - 1941*: government steps in... value drops to about 70,000 (in 1936, unions got control ... destroying business)
1941 - 1970: begin to rise to high of 85.00o then slides again in 1950 to 70.000 the rises to 125,000 in 1955 .... the market stayed fairly steady, rising to a high of 130.000 in 1960 and only dropping to 100,000 in 1969 .. rose to about 125,000 in 1970
1970 - 2010: (oh I wish I had a camera to take a photo of this!!) around 1980 housing came back down to around 100,000 then in the 1990's it went to 125,000; it dropped about just before 2000 to 110,000 and after that it jumps up to the an average of 200.000 in 2006 (pricing houses out of the range of common people) ... right now the average home is going for around 170,000 and projected to go back to that 100,000 mark by 2010 ...
Which would make owning a home more affordable for EVERYONE.
The conclusion wanted is that the housing market will do its best to keep the cost of a house around $100,000 ADJ for inflation.
I think the panic for people is that it seems that it is such a deep slide so quickly. If it had been gradual, or will little peaked steps down ... people wouldn't mind so much. No home owner wants the value of their home to go down ... c'mon, you want it to appreciate not depreciate ... you want to be able to sell it for more than you paid for it if you absolutely had to - to get out of it, all the time/effort/money put into it.
THAT is what is causing people to freak out --- they are now paying for a $250,000 home when the current market is saying that they could only get $150,000 for it or so.
If people would just hang on -- they will see that the market will settle down here soon ....
that is unless "someone"
We are driving on a slippery road --- and it feels like Obama is starting to OVER correct the skid. Never did this? lucky. If you over correct you will actually make the skid worse ... worse-case-scenario has the car flipping over and rolling down the embankment.
Obama needs to stop all the knee jerk reactions and let ONE plan take place before he kicks up a new one.
(If I can find a copy of that graph someplace I'll stick it up for you).