Is This the End? House Prices Drop (Again)
Recent news from the housing sector is not good.
In fact it stinks–stinks worse than ever.
Despite all the best efforts (or maybe because of the best efforts) of the government to prop up the housing market, the price of a home has fallen to its lowest point in nearly eight years. And, yes, that includes points during the “Great Recession”–or the pending “Great Double-Dip Recession.”
That means the housing market is officially in a double-dip recession pattern.
Prices fell 3.6 percent in March. And prices have dropped in all 20 major metropolitan markets, except one.
You’re dying to know which one, aren’t you. Well, if you’re wondering if the stimulus program worked, it sure did. If you’re a homeowner in Washington D.C. Prices rose 4.3 percent.
The market pretty much shrugged off this news. What about you? Should you be worried about a double-dip housing recession?
Yes and No.
Here’s why you should have some concern. Housing is a big chunk of the gross domestic product (GDP) and a lot of jobs are funded through the market. If the housing market is down, it may drive the rest of the economy into recession. This might be a mirror image of the Great Depression–which was actually a severe double dip depression.
On the other hand, maybe you shouldn’t worry.
The silver lining in this deep grey, almost black cloud is that a double dip probably will not turn into a triple dip. Once we make it through this–provided it isn’t part of a double dip rapture predicted on May 21–housing should recover. If you’re a contrarian, you want to buy low and sell high. This could be an opportunity.
As Stonewall Jackson said, “Never take counsel of your fears.”