According to Capital Economics, a Toronto-based independent macroeconomic research firm, a double dip in the U.S. housing market is beginning to show itself.
In addition, the Double Dip Begins report found that for every home currently on the market, there are two more waiting to be sold.
In an article at HousingWire.com, the report author Paul Dales noted that, “The expiration of the homebuyer tax credit at the end of April has triggered a double-dip in the housing market, with new home sales falling particularly sharply in May. The only reason why existing home sales did not fall significantly is because they are measured at the contract closing, rather than signing stage.”
Dales’ research also notes that both the foreclosure inventory rate and the mortgage delinquency rate rose in the first quarter, meaning that shadow inventory rose to nearly 7.8 million properties, clearly dwarfing the 3.9 million homes already on the market.
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