U.S. Housing Market is in a Double-Dip Recession

U.S. Housing Market is in a Double-Dip Recession

The double-dip recession in U.S. housing that I warned about last year has finally come to pass. Last Thursday (May 5th) Clear Capital, a property valuation outsourcing firm, released a report declaring that the U.S. housing market has officially entered a double-dip recession. The average national home price is now 0.7% below the previous low set in March 2009 during the depths of the global financial crisis. The report’s main conclusions are as follows:

• National quarterly home prices changed -4.9%; while year-over-year national price changes reached -5.0%.
• National home prices have fallen 11.5% over the previous nine-month period, a rate of decline not experienced since 2008.
• All the major Metropolitan Statistical Areas (MSAs) showed quarter-over-quarter price declines.
• National REO saturation rate reaches 34.5%.

REO stands for “real-estate owned” and means the home is owned by a bank after a foreclosure. I find it amazing that more than one-third of all home sales are foreclosure properties. No wonder home prices are going into the tank!

Waiting for your home to regain its value is going to take longer..for complete story click here