The housing double dip has begun

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There was further gloomy news for America's homeowners as national house prices dipped in the three months to September. The S&P/Case-Shiller index, released on November 30th, fell by 1.5% from the same period in 2009 and by 2% from the previous quarter. The end of the government's tax incentives and ongoing foreclosures are contributing factors. The index is now back at 2003 levels. Prices in the ten big cities are 2.6% higher on a quarterly basis than a year ago, but the same downwards trend is evident there too. Indeed the broader 20-city gauge, which began in 2000 and is not shown here, rose by only 1.8% on a year earlier.

http://www.economist.com/blogs/dailychart/2010/12/house_prices?fsrc=scn/fb/wl/dc/doubledip

[nab 74]

the decrease in price also has to do with how house prices were over-inflated... many foreclosures still arent worth buying because the balance owed is still more than the real value of the home. "2003 level" is still way over-priced... when houses get back to "1999 pricing" then we'll see.

[alienlovechild 75]

The high unemployment figures continue drive down home prices. People lose houses and others still can't afford (still) inflated prices. The banks are still holding a large number of homes off the market for fear of driving down prices further.