Are Home Prices Headed to Double Dip Zone?

Home Prices to Double Dip Zone??

The nationwide Standard & Poor’s/Case-Shiller 20-city index fell for the eighth straight month. Prices in a dozen markets hit their lowest points since the housing bubble burst in late 2006.

Many economists think prices nationally will drop at least additional 5% by the end o f 2011.  Until the abundance of foreclosures  is reduced, employers start hiring in greater numbers, banks relax lending rules and prospective buyers regain confidence  we are  not going to see a stabilization of prices.

The home-price index surged 155 percent between 1999 and 2006 when it peaked in July 2006. Since then, it fell33 percent.

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Coastal areas, Greater New York & Bergen County included, did better during the last two years then other parts of the country. Towns such as Tenafly with its great school system &  proximity to Manhattan, a  healthy local economy and the relatively low unemployment kept the demand to move into them  higher than other areas.