According to the S&P/Case-Shiller index, which measures 80 percent of the housing market, home prices have decreased by 5.1 percent in the last year.
All told, home prices have tumbled 32.7 percent from their 2006 peak and show no signs of rebounding any time soon.
“This month’s report is marked by the confirmation of a double-dip in home prices across much of the nation,” said David Blitzer, an analyst at Standard & Poor’s. “Home prices continue on their downward spiral with no relief in sight.”
But is it really a “double dip?”
Prices briefly rebounded in the summer of 2009, but this modest uptick was due to artificial government stimulation of the marketplace. When government aid evaporated, the decline continued. In fact, the minimal gains achieved two years ago have now completely evaporated – calling into question the efficacy of another of U.S. President Barack Obama’s “stimulus” efforts.
Along with high unemployment, the sluggishness of the housing market has acted as a drag on America’s economic recovery – hammering the construction market and suppliers of raw materials.
The falling prices also mean a bigger bailout tab for government-owned mortgage behemoth Fannie Mae and Freddie Mac.
Source http://www.fitsnews.com/
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