It’s Official: Housing has Entered a Double-Dip

Housing can not come back until the banks start loaning money to buyers again.

Scott is right, the banks have to start loosening their purse strings.  I hate the way the banks advertize they are there for you UNTIL you apply for a home loan; it's killing real estate.

Good post, thanks for sharing. Who knows when anything will actually change. Of course, every market is different - fortunately ours is recovering, but for all we know something could commence a change tomorrow. 

John,

This isn't good news. Canada generally seems to have weathered the storm, buit there is a "spillover effect".

Brian

Home values in a healthy economy are traditionally no more than 3 times annual earnings.  Wages are basically where they were 15 years ago thanks to inflation.  The banks are hoarding the money being printed by the Fed, using it only to buy the Treasuries that feed our deficit spending (monetizing debt).  All of this benefits the banking cartel, and Wall Street.  Until the banks are forced to reconcile their bad debts through honest Mark to Market valuation (and, yes this will kill most of them) there will be no true recovery.  Bankruptcy laws exist for a reason - to purge the system of bad debts, and move on. 

Our current path is simply an attempt to paper over the bad debts, and transfer the liability to the taxpayers while the banks get to keep their bonus money.  We have a long way to go before we actually hit the true bottom, and unfortunately, our grandchildren will be left with the bill.

John--I came here to learn the latest and I did.  Thanks.

You are most welcome, John.

As an inspector I had not noticed any real crawl upward from the previous dip, to recognize another more recent one.

There has been a bump up the last few weeks, but I think it is people deciding to get in before the interest rates go up.