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Double Dipping?

A recent article published by the California Association of Realtors examines whether we are headed for another decline in house prices. According to the article, the sale of homes decreased by 11.7% from February 2010 to February 2009, while the median price rose to $279,840. Are we gearing towards another dip? The C.A.R. says it is unlikely based on the following elements:

- affordability is twice the level of 2007;
- inventory, although increasing, is still below historical norms.

The big “ifs” that remain are:

- Can the housing market sustain itself once the tax credit are off the table on June 30?
- What effect will recent improvements to the federal home loan modification program have?
- How long will the Fed keep interest rates at rock-bottom?

Others have identified the “shadow inventory” of foreclosed homes not yet released to the market as a possible negative factor.

What do you think? Please read the original article included in this post:
Double [Dip] or Nothing?