Why Home Prices Have Much Further To Fall

There has been a deluge of articles recently about the upticks in the housing data. The consensus is that these data points are surely indicating, finally, a bottom in the depressing decline of real estate. Let me acknowledge that I do not dispute the improvement in the data regarding home starts, permits, pending sales, etc. However, let's be clear that all of these data points are still mired at very depressed levels. So, while optimism is certainly always a welcome thing, for the average American, the world is quite different.

(Note: I suggest a review of recent posts on Housing Is Not Affordable and The Margin Effect for more background on why housing is going to be in...