Double Dip?

It surely seems as though this is where we are heading with the real estate market:

Here’s the brief version:

  • Home prices in major metropolitan areas fell 1.3% from September to October
  • Many economists believe that the gains from Spring 2009 will be wiped out by declines in 2010
  • Unemployment rose to 9.8% last month
  • Demand is non-existent
  • Supply is still growing
  • Mortgage rates are increasing slightly
  • NAR claims that 30% of sales have come from distressed situations
  • Given the supply, Wells Fargo projects that prices will drop by 8% in 2011
  • The simple truth is that people feel poorer when their home value declines
  • “The Conference Board, a business research group, said Tuesday that its confidence index fell to 52.5 from 54.3 in November, as consumers’ views about job availability worsened” – reported the WSJ

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.