Recent housing data reports are consistent with our predictions for a double dip in home prices. Prices were expected to stabilize temporarily but fall as government support is phased out. Positive data in the run-up to the expiration of the extended homebuyer tax credit may push home prices higher over the coming months, but fundamentals indicate that a sustainable pick-up is unlikely. Additionally, vacancies, foreclosure rates and mortgage rates deserve careful attention, as they are expected to exert further downward pressure on struggling prices.
In a recent blog[...]