Triple Dip Housing Price Drop Projected.
Barclays Capital is expecting a triple dip in the first quarter of 2012. Home prices may drop another 7% during this time. 
The double dip happened last year which put home prices at a low but the triple dip would place home prices another 3% lower than they were coming out of the double dip.
The good news is that it is also projected that after the triple dip happens that prices will begin to slowly, very slowly start to increase in value.
Barclays Capital says that we are "getting close to the equalibrium".
The reason it is taking so long to get into the equalibrium is because of the preventive measurements to overcorrection in the markets because the REOs are being withheld from the market and the foreclosures are not going through fast enough to get out the place we are in. Banks are limiting the amount of inventory they put on the market in order to not further squash home values.
There are about 4 million homes that are in serious default and delinquent on their payments or in some stage of the foreclosure process. These homes will have to get foreclosed or sold as short sales first before we can get back to some form of normalcy in the market.
Most states where the process is in clogged processes are coming up with ways the court systems can get the foreclosures through in a more timely manner.
Right now there is more demand than supply for the REO properties that are on the market but as the 4 million or so other homes start filling up the pipeline the supply should outpace the demand next year but the supply to demand that is imbalanced today may well move into 2012 and 2013 before we see it reverse.
Of course the economy is going to play a huge part in how long this takes to happen or if it eases sooner or later. The prices will not move upwards until the REO inventory is settled.
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