Home Prices Sink


Inquiring minds are reading of a new round declining home prices
which is threatening U.S. recovery. This new data comes just as consumers and the overall economy have been showing signs of healing:

Home prices across 20 major metropolitan areas fell 1.3% in October from September, the third straight month-over-month drop, according to the S&P/Case-Shiller home-price index released Tuesday. Many economists expect the declines to continue into at least next spring, erasing most of the gains made since prices bottomed out in early 2009.

The housing market, which appeared poised for a recovery earlier in the year, now could be heading for a second downward drift.

“This looks like a double-dip [in housing] is pretty much on the way, if not already here,” said David Blitzer, chairman of the Standard & Poor’s index committee. “Somebody who thought last year that it’s going to be straight up from here was wrong.”

“Downward drift”? “Drift”? Unemployment is up to the stratosphere and interest rates have been rising. And analysts think housing could go up?

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