Home Values Continue to Slump

A random selection of quotes from economists. The pace of bad economic news is accelerating:

"Months of surging energy prices appear now to be trickling up the production chain to finished goods prices,” Kenneth Beauchemin, an economist at Global Insight, a research firm, wrote in a note to clients

"The Fed is now having to walk a very fine line,” said Jane Caron, chief economic strategist at Dwight Asset Management, an investment firm that specializes in bonds.

"February may go down in history as the month that the previously indefatigable U.S. consumer finally threw in the towel, beaten by a combination of deteriorating labor market conditions, surging prices for food and energy and collapsing house prices,” Paul Ashworth, a senior United States economist at Capital Economics, wrote in a note to clients.

And this from the New York Times:

In many parts of the country, specialists note that home prices remain too high based on affordability calculations made using incomes and interest rates. A recent report by analysts at Credit Suisse, the investment bank, said that prices in some metropolitan areas like Phoenix, Miami and Los Angeles would have to decline by 20 percent to 40 percent more than they have already fallen for home affordability to be restored to its long-established level.

Posted at February 26, 2008 03:54 PM

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