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

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