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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: shades who wrote (59038)4/21/2006 8:28:06 PM
From: Elroy Jetson  Read Replies (2) of 110194
 
You are not the first to have discovered misinformation on a random internet blog. I hope this doesn't surprise you.

The simple truth is that during the Great Depression, people with money could easily purchase a home for 80% or 90% less than they previously sold for.

My Grandparent's purchase of a home in Hancock Park in Los Angeles for $550 cash, which had previously sold for $6,200 in 1927, was hardly a fluke - but rather a common experience for those with money.

The Real Estate Research Council has maintained an index of "same home" prices for Los Angeles County since 1895 maintained by by the top appraisers in Los Angeles. This index re-appraises a large number of homes once every six months.

csupomona.edu

The RERC "same home" index indicates that between 1927 and 1933 home prices in Los Angeles County declined by 55%. More expensive homes in areas like Hancock Park, where the stock market crash took the biggest toll, saw much larger declines in home valuations.

home.pacbell.net

You will notice that rents, per the CPI rent index, declined by a mere 37% during the same period in the Great Depression.

I do not doubt that there are any number of "internet blogs" which disagree with this, or claim that the government is run by Martians, or definitively prove that there are no bugs in Florida. Foolishness abounds, and quoting it merely makes you seem foolish.

None of this changes the obvious demonstrable facts - average home prices declined by 55% in Los Angeles County between 1927 and 1933, with larger declines seen in wealthier areas.
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