Just when you thought the real estate market was showing signs of a recovery, reality rears its ugly head.
According to the latest figures from the Case-Shiller Home Price Index, prices have started to slip again pointing to a double dip in home values. Nationally, home prices dropped 1.5% in September.
That’s a trend that Case-Shiller expects to continue since earlier this month they forecast a further 7.1% drop in home prices into the second quarter of 2011.
In all, 18 of the 20 metropolitan statistical areas that are measured by the S&P/Case Shiller index reported home price decreases for the quarter, although they are still above their low points from the spring of 2009.
From the report entitled:
Broad-based Declines in Home Prices in the 3rd Quarter of 2010 According to the S&P/Case-Shiller Home Price Indices
“Another weak report; weaker than last month. The national index is down 1.5% from the third quarter of last year and 15 of 20 cities are down over the last 12 months. Other than Tampa, FL, there are no new lows this month but many analysts will argue that a double dip will be confirmed before Spring. While some of the bad numbers may reflect the end of the government’s tax incentive for first time homebuyers, there are other problems weighing on the housing market.” says David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s. “The national economy is certainly the number one issue for housing. Additionally, there is a large supply of houses on the market and further, hidden, supply due to delinquent mortgages, pending foreclosures or vacant homes. New construction is running at less than half the pace needed to meet normal demand, so a sustained recovery could be a ways off.”
From their peak in June/July of 2006 through the trough in April 2009, the 10-City Composite is down 33.5% and the 20-City Composite is down 32.6%.”
No jobs, no money, no dice.
It’s really not that complicated.
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