United States: Double-dip in housing market as prices tumble below the April 2009 trough
May 31, 2011
In March, the S&P/Case-Shiller home price composite 20-city index fell for the eighth consecutive month, decreasing by 0.8% over the previous month on a non-seasonally adjusted basis (February: -1.1% month-on-month). As a result the index sits 3.6% below the value recorded in the same month last year which, in fact, represents the lowest level in over eight years, corroborating the notion of a flailing recovery in the housing market. Home prices have fallen 33.1% below the July 2006 peak. According to S&P, ?the rebound in prices seen in 2009 and 2010 was largely due to the first-time home buyers tax credit. Excluding the results of that policy, there has been no recovery or even stabilization in home prices during or after the recent recession. Further, while last year saw signs of an economic recovery, the most recent data do not point to renewed gains.?