The economy seems unimpressed with teleprompter skills and unicorn farts.
The Housing Market, the crash of which (as most will recall) was the precipitating event of the current recession, has just hit the double dip point.
Reuters | May 31, 2011 | 09:05 AM EDT
U.S. single-family home prices dropped in March, dipping below their
2009 low, as the housing market remained bogged down by inventory and
weak demand, a closely watched survey said Tuesday.
The S&P/Case Shiller composite index of 20 metropolitan areas
declined 0.2 percent in March from February on a seasonally adjusted
basis, in line with economists’ expectations.
The price index was below the low seen in April 2009 during the
financial crisis. The glut of houses for sale, foreclosures, tight
credit and weak demand have kept the housing market on the ropes even as
other areas of the economy start to recover.
The 20-city composite index was at 138.16, falling below the 2009 low of 139.26.
“This month’s report is marked by the confirmation of a
double-dip in home prices across much of the nation,” David Blitzer,
chairman of the index committee at S&P Indices, said in a statement.
“Home prices continue on their downward spiral with no relief in
Eight cities fell 1 percent or more in March, while Washington
was the only city where prices increased on both a monthly and yearly
basis. Prices in the 20 cities fell 3.6 percent year over year, topping
expectations for a decline of 3.3 percent.
“The declines sustained in the last 12 months have almost erased
the gains of the previous 12 months. The housing market is treading
backward, but not drowning,” said Cary Leahey, economist and managing
director at Decision Economics in New York.
In the first quarter, the national index fell 1.9 percent on a
seasonally adjusted basis, compared to a decline of 1.8 percent in the
previous quarter. On a non-adjusted basis, they fell by 4.2 percent in
the quarter. Nationally, home prices are back to their mid-2002 levels,
the report said.
Blitzer told CNBC that the decline in prices, though fairly
widespread, has become more prevalent in geographic pockets–the
Southwest and Southeast as well as the Michigan and Ohio manufacturing
“What we’ve seen over the last few months despite the decline in
prices is we’ve gone back to the old ‘location, location, location’
story instead of everything going down at once,” he said. “California
has clearly broken out of the pattern it was in, which is a big plus.”
Though there had been hopes in the industry that prices were
troughing and ready to turn higher, the latest trends show little hope
in sight until later this year or early in 2012, he added.
“Everybody’s now keeping their fingers crossed for 2012 and
wondering whether people just don’t want to own homes anymore,” he said.
On a non-adjusted basis, they fell by 4.2 percent in the quarter.
Will a double dip recession announcing itself in the third or fourth quarter of this year also be “unexpected”?
Personally, I look forward to the “unexpected” unelection of the current administration in November of 2012 by a voting public fed up with “unexpected” economic news which was entirely expected.