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What’s Driving Down Home Prices?

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  • Description

    FBN’s Liz MacDonald on recent data that home prices are at their lowest level in more than a year.

  • Duration 2:05
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A lot of it.

Home sales are down more than 7% month to month and home prices are down to 2002 levels was -- McDonald is here.

I recovery was underway and housing market put in a bottom we are moving on -- I thought it now looks like we're still struggling along the bottom home sales -- that that.

Levels we haven't seen the worst levels in over a year but it's really a whole price story.

And what it what is dragging down home prices is really the issue yes that -- -- but you know what's really driving down home prices.

Our nine cities there are seeing their post crisis -- new lows and those lows are being seen in places like Atlanta Las Vegas Atlantic -- more than 817%.

And Las Vegas down another but no more than 8%.

Wow the second G -- -- it and home prices could drop even further from here I mean I guess it depends where you let Rick couldn't let's take a look at the nine cities and here's eight.

The reason why.

Housing prices are so bad in these nine -- look at the unemployment rates that we're seeing in places -- like Las Vegas part and a half percent.

Up look at Lanny Tennessee Atlanta really high at 11% Agassi double digit.

Unemployment and Cleveland as well also these are the real hot -- big reason -- -- -- -- lower house prices.

Is rising unemployment and the mentality is now the bad bailout mentality is.

Look housing must save the -- no housing -- leaping -- comes behind an economic recovery.

Not leading the economic recover -- the recovery so that's an issue for DC policy makers.

That we've seen -- time and again early sixties early seventies early eighties early ninety's Resolution Trust Corp.

when housing prices found a bottom.

That's when sales picked up yeah and you think the biggest recovery has been slower than ones in the past because we're trying to this sort -- just keep it from -- yet and to -- -- opposite impact it is having the opposite impact and now you see congress using Fannie Mae and Freddie Mac.

You know -- -- house Republicans say no to more bailouts are gonna do with for inventing -- the job creators yeah that's right out into the other too quickly and final point in these cities that DC housing prices stabilized to seek good solid blue chip companies operating there to ask us troops in that thank --

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