"There’s a double-dip in housing prices (and see this).
As CNN points outs:
U.S. home prices fell 2% in the third quarter after having gained steadily since early 2009.
The S&P Case-Shiller Home Price Index has recorded gains in four of the previous five quarters, including a 4.7% jump between April and June 2010. That leaves national home prices down 1.5% year over year and off 2% compared to the second quarter, according to the Index, which was released Tuesday.
The inventory of homes is high with nearly 3.9 million on the market in October, according to the National Association of Realtors. That means it would take 10.5 months to sell through all of the current inventory. In a normal market, there is usually a six-month supply.
Plus, there’s a massive shadow inventory of homes waiting in the wings. These are homes that are deeply in the foreclosure process or even repossessed by banks but not yet put back on the market.
Much of the massive shadow inventory of homes is due to the fraud involved with mortgage documents..."
at http://www.nakedcapitalism.com/2010/12/guest-post-double-dip-in-housing-largely-caused-by-failure-to-prosecute-mortgage-fraud.html
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