Housing Market Double Dip
House prices dropped to levels below the 2009 housing bust bottom in the first quarter confirming fears of a housing market double dip, dropping 4.2 percent from the previous three months, according to an industry report released Tuesday.
Prices have not been this low in the S&P Case-Shiller national home price index since the middle of 2002.
It was the third straight quarterly drop for the index, which was down 5.1% from a year earlier. National prices are now down 32.7% from their peak set five years ago.The S&P and Case-Shiller national home price index covers 80% of the housing market.
“This month’s report is marked by the confirmation of a housing market double dip in home prices across much of the nation,” said David Blitzer, spokesman for Standard and Poor’s.
Housing Market Double Dip-Brief Recovery
The housing market went through a brief recovery period starting in mid-2009. Home prices recovered nearly 5% of their earlier losses. After home-buyer tax credits, which were in effect during the rebound, expired last April, the slump resumed leading to the recently released reports of a housing market double dip.
“The rebound in prices seen in 2009 and 2010 was largely due to the first-time home buyers tax credit,” said Blitzer. “Excluding the results of that policy, there has been no recovery or even stabilization in home prices during or after the recent recession.”
A separate S&P/Case-Shiller index covering twenty major urban areas also fell in March, this being a straight eight monthly decline.
This is the second month of the post-recession housing market double dip for the twenty city index. Home prices reached their highest levels in July 2006,but then started a declined that lasted till June of 2010, adjusted for seasonal differences, have plunged every month since.
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