Housing prices still falling

Home prices in 20 markets fell 2.2% in March and were down 18.7% in the past year. Can you say OUCH! How about UNDER WATER? Perhaps you'd prefer YIKES.

With interest rates at historical lows you'd think home prices would at least stabilize if not rise, but that news doesn't appear anywhere on the horizon.

The largest investment most families make is purchasing a home. There's no question - American families are poorer than they were last year or the year before. But how poor are they?

The value of US housing is around $20 trillion. That's nearly double the value of the GDP. It's a big number.

With housing prices down 18.7% in the last year Americans have lost $3.7 trillion. Since the peak in 2006 housing has lost nearly 40% of its value or $8 trillion. That's approximately $25,000 for every man, woman & child in the USA. If you're married with 3 kids then your share is 5 x $25,000 or $125,000.

With that much equity wiped out people have little incentive to stay in their homes.

Who knows how much further it can fall.