I was reading an interesting article in SmartMoney about housing.

Why U.S. House Prices Won’t Recover
Hough: Taking inflation into account, U.S. home prices are down to 1895 levels.

It postulates that housing is not only back to 1998 levels, but 1895 levels. What does that mean?

  • The USA had only 44 states: Utah, Oklahoma, New Mexico, Arizona, Alaska and Hawaii were still territories and yet to join
  • People got around by horse and buggy
  • The Soviet Communist Revolution was still 22 years away
  • Steve Jobs was yet to be born for another 60 years
  • There were no iPhones
  • The sun still never set on the vast British Empire
  • Social Media was done by telegraph
  • Facebook was still just BOOK-BOOK
  • And the National Association of Realtors was yet to be founded for 13 more years.

So, I ask the question: Why are folks waiting to buy?  Are people scared? Or do you think values will fall further?