I follow a variety of sources in regards to news and as the above picture highlights, the press is running full steam ahead with the double dip. We’ve been tracking the massive amount of shadow inventoryand large pipeline of troubled homes so the question of a double dip was never in doubt. The question was rather one of timing. It is now clear that the new bottom in housing prices, both in nominal and real levels is occurring fluidly today. This is now an active cycle low. The only question in doubt at this point is how much further will home prices fall before reaching an absolute bottom? I don’t think we can answer that question until we figure out how low household wages will go (or move up if the economy turns around). This is really the wild card in how deep this double dip goes.
Read the whole post at Financial and psychological double dip for real estate – How new economic news will feed into lower home prices as incomes remain stagnant. Only 11 percent of recent loan volume in the first quarter dealt with purchases.