Nationwide Housing Slump Could Foreshadow Economic Slowdown
The median price of American homes nationwide is expected to fall this year for the first time since the feds began keeping statistics in 1950. This could foreshadow a national economic slowdown. San
Tom Fudge: Anyone who has owned property in San Diego over the past ten years has seen home prices go through the roof. If you own a home you may have seen its value double or triple over the past ten years. But it was clear to most of us that it couldn't last. And seeing home prices cool down may be seen as a welcome adjustment.
But the foreclosures and mortgage defaults -- that's another matter. In July 2007, more than 2,000 San Diegans defaulted on their mortgages. That's a 19 percent increase from June 2007, and it's up 157 percent from July a year before. Nationwide, home prices are headed downward, according to several indicators. In fact, the loss of home value is something we rarely see in this country. And members of Congress are now debating whether something should be done to help homeowners who can't make their payments.
Rich Toscano ,
financial advisor, real estate columnist for voiceofsandiego.org, and blogger.