An article by Betsy Schiffman, Daily Finance outlines the opinions of Paul Dales of Capital Economics, an investment research firm. http://bit.ly/agkQBQ Mr. Dales believes the double dip in housing is here already. Each market will have its own characteristics and your own research will assist you in understanding how a broad statement may relate to your market.
Are prices continuing to slide in your market?
Are sales up due to the federal tax credit opportunity which expires this week and homes must close by the end of June?
Are sales up due to more foreclosures? It is possible that a foreclosed unit taken back by a lender may be counted as a sale since it changes ownership. The foreclosed units will bring prices down even further.
With an over-supply of homes on the market, high unemployment, and the lack of job growth will cause the housing sector to remain unsettling. In my opinion, a double dip would mean that there was another “peak” when the peak would seem to be artificial in circumstance. Interest rates are trending up to further complicate any sustained recovery anytime soon.
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