US Home Prices Slip into Double Dip Crisis

The news we report today about US home prices is again all negative – when is the housing market going to recover!

The US housing sector now descends into double dip crisis mode as house prices drop again in November 2010 – which is the fourth month-to-month decline in a row

The LA Times have more details – quote – A “double dip” in home prices appears to be underway in the nation’s biggest cities, jeopardizing the tepid U.S. economic recovery.

The widely followed Standard & Poor’s/Case-Shiller Index, which tracks the real estate market in 20 major U.S. cities, showed that prices dropped 1.6% in November from the same month a year earlier, the second consecutive year-over-year decline. What’s more, the index fell 1% in November from October, marking the fourth consecutive monthly decline.

Last year, a recovery in housing prices seemed to be on track. But analysts now say that that improvement was juiced by home-buying tax credits that have now expired. In addition, unemployment has remained stubbornly high and millions of Americans are still at risk of foreclosure.

A second slide in home prices would act as a drag on the economic recovery — and stand in sharp contrast to other downturns. During the real estate crash of the 1990s, for example, prices slowly but steadily rose from their bottoms.

‘FHARates.Info looks forward to the day we can report good news in the US Housing market!’

The full article is available at The LA Times – read now!,0,4931371.story

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