The always excellent Diana Olick of CNBC reports that the housing double dip is already upon us. In a story issued yesterday, Olick cites two new reports that confirm why she believes the housing double dip is already beginning:
Two new reports out today prove the consequences of oversupply of organic inventory (12.5 months on existing homes in July according to the National Association of Realtors) and the shadow inventory of foreclosed properties (estimates vary widely and wildly). CoreLogic’s Home Price Index shows home prices “flat” in July as transaction volume continues to decline. “This was the first time in five months that no year-over-year gains were reported,” according to the release. In June, prices were up 2.4 percent year over year. In addition, “36 states experienced price declines in July, twice the number in May and the highest number since last November when prices nationally were still declining.”And there’s the rub.
The negative headwinds in the housing market are astounding and it’s remarkable that we’re talking about a double dip before the leaves even fall off the trees. This is a very seasonal industry. The decline in housing couldn’t really be starting at a worse time…..