I’ve been saying for months that housing will continue to decline. It’s now official that the housing market has hit a “double dip” – meaning after a brief rebound, housing prices are now lower than they were in 2009. What really stands out to me is over 1/3 of properties on the market are bank owned.
At the start of the year, banks were increasing staff to get these foreclosed properties off their books as fast as possible. I expect these banks will be accepting offers way below market in order to sell them quickly – thus causing overall prices to continue to drop.
Larry Kudlow over at CNBC hosted a discussion on this topic last night. Watch the video to hear both sides: