Fears of a double dip in housing are giving away to a realization that the nation’s mortgage markets are facing a much colder reality — something that will not so easily be named, but is nonetheless hanging around for a very long time.
Both Standard & Poor’s and Radar Logic Research released updates Monday on the prices sellers are asking for residential properties. Neither is positive.
“No matter what you call it, a ‘double dip’ or the continuation of a long process of deterioration, the current trend in home prices is evidence that housing markets are continuing to languish,” said Quinn Eddins, director of research at Radar Logic.
“We expect the negative trend to continue under a severe supply overhang that includes a large and growing ‘shadow inventory’ of homes in default or foreclosure,” Eddins said.
In the past, such market behavior would be called a “w-shaped” recovery. But the National Bureau of Economic Research called an end to the recession in June 2009, and nearly two years later, there is not enough improvement to resemble a recovery in the housing market.