The Housing Crisis moves inexorably on, like a glacier — slow-moving but unstoppable. Despite government wasting trillions of dollars in an attempt to prop up housing, economic laws prevail. Keynesian economics, even to excess, has done nothing to stop the decline.
Housing prices dropped another 8% last year and are currently falling around 1% per month. The decline in the first quarter of 2011 was the fastest since the drop-offs experienced in 2008.
To understand the magnitude of the problem, view these 20 factoids courtesy of The Economic Collapse:
#1 According to Zillow, 28.4 percent of all single-family homes with a mortgage in the United States are now underwater.
#2 Zillow has also announced that the average price of a home in the U.S. is about 8 percent lower than it was a year ago and that it continues to fall about 1 percent a month.
#3 U.S. home prices have now fallen a whopping 33% from where they were at during the peak of the housing bubble.
#4 During the first quarter of 2011, home values declined at the fastest ratesince late 2008.
#5 According to Zillow, more than 55 percent of all single-family homes with a mortgage in Atlanta have negative equity and more than 68 percent of all single-family homes with a mortgage in Phoenix have negative equity.
#6 U.S. home values have fallen an astounding 6.3 trillion dollars since the housing crisis first began.
#7 In February, U.S. housing starts experienced their largest decline in 27 years.
#8 New home sales in the United States are now down 80% from the peak in July 2005.
#9 Historically, the percentage of residential mortgages in foreclosure in the United States has tended to hover between 1 and 1.5 percent. Today, it is up around 4.5 percent.
#10 According to RealtyTrac, foreclosure filings in the United States are projected to increase by another 20 percent in 2011.
#11 It is estimated that 25% of all mortgages in Miami-Dade County are “in serious distress and headed for either foreclosure or short sale“.
#12 Two years ago, the average U.S. homeowner that was being foreclosed upon had not made a mortgage payment in 11 months. Today, the average U.S. homeowner that is being foreclosed upon has not made a mortgage payment in 17 months.
#13 Sales of foreclosed homes now represent an all-time record 23.7% of the market.
#14 4.5 million home loans are now either in some stage of foreclosure or are at least 90 days delinquent.
#15 According to the Mortgage Bankers Association, at least 8 million Americans are currently at least one month behind on their mortgage payments.
#16 In September 2008, 33 percent of Americans knew someone who had been foreclosed upon or who was facing the threat of foreclosure. Today that number has risen to 48 percent.
#17 During the first quarter of 2011, less new homes were sold in the U.S. than in any three month period ever recorded.
#18 According to a recent census report, 13% of all homes in the United Statesare currently sitting empty.
#19 In 1996, 89 percent of Americans believed that it was better to own a home than to rent one. Today that number has fallen to 63 percent.
#20 According to Zillow, the United States has been in a “housing recession” for57 straight months without an end in sight.