Home Prices Deflate at Sharpest Rate Ever

The FED induced housing bubble continues to deflate in spite of mass monetary pumping by the Bernanke and the FOMC. We are now at or near the three year anniversary of the market peak of housing and yet the market still does not appear to have bottomed yet. While Jim Cramer may be right about the recently passed housing bill providing an actual floor for prices, the bill’s costs are significantly higher than allowing reports like this to continue until the liquidation of malinvestment is complete.

NEW YORK (AP) — A widely watched index released Tuesday showed home prices dropping by the sharpest rate ever in the second quarter, but the data for June suggest the severity of the housing slump may be waning.

The Standard & Poor’s/Case-Shiller U.S. National Home Price Index tumbled a record 15.4 percent during the quarter from the same period a year ago.

The monthly indices also clocked in record declines. The 20-city index fell by 15.9 percent in June compared with a year ago, the largest drop since its inception in 2000. The 10-city index plunged 17 percent, its biggest decline in its 21-year history.

Continued & Credited to Yahoo News…

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