From the L.A. Land blog over at the LA Times reads the following on homeowners' losing values of their houses.
A Washington think tank is warning that housing prices are falling at an accelerating level, destroying wealth at a pace that will cost the average homeowner $85,000 in lost wealth this year alone.
The projections by the Center for Economic and Policy Research are based on the numbers in Tuesday's Case-Shiller home price index, which showed accelerating price declines in most big cities.
I agree it is a great loss of wealth in a short period of time. But it would be interesting to see how much wealth the average homeowner has accumulated in the past 5 years even with the recent drop? Or the past 10 years? I would bet that even with the deflation in home values taking place right now, many people are still seeing a very good rate of return on their homes in the long term.
Source: By Ideal Investment Corner
