I apologize for another real estate post, but I’m stressing that the most important development in Bushlandia this week is the popping of the real estate bubble. Uncle “Helicopter” Ben just celebrated the falling of Greenspanomics by pinning another hole in his bubble with 5.25% interest rate.

In the meantime, this wonderful site is posting the realtime statistics of real estate prices in few selected cities. The “trouble zones”, where the median price declined from May to June are:

  1. Boston -0.9%
  2. Las Vegas -0.5%
  3. Miami -1.4%
  4. Phoenix -1.4%
  5. Sacramento -1.3%
  6. St. Louis -1.8%
  7. San Diego -0.7%
  8. San Francisco -0.8%
  9. San Jose -0.5%
  10. Tampa -1.7%
  11. Washington -1.1%

Let me say this in dollars: the average Miami (FL) home lost $5,400 of value in one month. If you add mortgage interest $1,500 and tax/condo fee $800 then the price to own a home in Miami is about $7,000-$8,000 now. The average rental price for 2b/2b condo is $1,100, or you can rent a house for $1,500. A very good house for $2,000. So the ownership is more expensive than rent by $5,000-$6,000.

Let check in few weeks how the price reacts to this latest Bernanke achievement…