This is certainly not welcome news. For those of us who were hoping to have our homes as a nest egg for retirement are going to be disappointed. This will be especially true for those who will be retiring for good in the next 10 years or so.
The pessimistic outlook on home values is really not all that surprising in my book. Serious damage to the real estate market has been done. Values in homes are as low as 2000 prices, and the market has yet to experience a serious glut in foreclosed homes. Couple the aforementioned reasons with a natural pessimism that I think people are going to have towards purchasing a home, home values increases are going to be stunted. There will be some markets that will recover nicely, most likely in areas that see economic recovery sooner.
I sometimes wonder if Barney Frank and other democrats who pushed banks to loan money to people who should have never been the market ever loses sleep over what he has wrought. If I were to hazard a guess, I’d say that he feels nothing. It would not surprise me if and when the market shows life once again, that he doesn’t try the same thing all over again.