US home price double dip erases post-crisis gains

A

ASusilovic

US house prices are in a double dip that has erased all of their bounce since the recession and threatens to derail a stuttering economic recovery.

The S&P/Case-Shiller house price index fell by 4.2 per cent in the first quarter of 2011, breaking through a 2009 low to hit its weakest level since 2002.

http://www.ft.com/intl/cms/s/0/cd7760f8-8b80-11e0-8c09-00144feab49a.html#axzz1NxoG6OIk

Wait, when did I hear the last time about a double dip? Was that before "green shoots" or thereafter? :D
 
So Bubble ben bernankes artificially low rates aren't propping up the worthless housing market, how can that possibly be. Something isn't right, historical low interest rates, a booming stock market and housing is still down for the count, quite interesting to say the least. I wonder what is next to push housing prices higher, I mean they have tried nearly everything they could to at least somewhat stabilize the market, imagine if they didn't. Some might have been able to purchase a house 30-50% cheaper right now, but why let that happen....they decided to keep housing prices propped up without letting the free markets take prices where they should have gone. Housing prices and the cost of living are still at extreme levels, going back to 2006 lows is nothing, show me a housing number and the cost of living at 15 or even 25 year lows and now were talking. Housing prices are still way over inflated and taxes are still rising in about 90% if the areas around the US. People need to wake the fuck up and realize the prop job they have created in the housing market, until they let the free markets decide where housing prices should be its a no win situation. And why home builders continue to build new housing is beyond me as a glut of new houses on the market arent even moving. Bubble ben bernanke will have to come up with another master plan to continue to prop job and that will mean artificially low mortgage rates, historical low fed fund rates at 0% and more stimulus and QE3 to make it look like the economy is really growing when in fact its just a bunch of smoke and mirrors!!!!!!!
 
This was completely predictable.

There is still a long way to go until residential real estate prices reach truly sustainable levels.

How go the Fanny/Freddie reforms?
 
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