A Triple-Dip in Housing Could Get Ugly

[dkf]

NEW YORK (TheStreet -- Another drop in house prices? Dr. Dani Babb says it could be worse than some are saying.

Fiserv (FISV_) recently issued a report that suggests pent-up foreclosures are readying to flood the market and send house prices down another 3.6% by June.

This would be a new low of 35% off the peak prices reached in 2006. The analysis suggests that banks have been unable to pursue foreclosures as a result of the robo-signing scandal. Now the banks are getting close to moving past the scandal and since the job market hasn't recovered, many homeowners may end up losing their homes.

Dr. Babb, the founder of the Babb Group and the author of several real estate books including The Accidental Landlord, says many analysts neglect to count what she call "sidelined" home sellers. These are homeowners that pulled their homes from the market because they didn't like the price or had no buyers. Sidelined homes also include homes where deals don't go through because sellers can't get appraisals or the banks pull financing at the closing.

http://www.thestreet.com/story/11296082/1/a-triple-dip-in-housing-could-get-ugly.html?cm_ven=skyg

[JVS]

1. Those prices are going to go down unless aggregate wages go up.

[msongs]

2. or available houses at affordable prices and interest rates will stimulate the market... nt

[lonestarnot]

3. What? Richie rich is going to buy everybody's crap?

[Downwinder]

4. Going to tear up the tax rolls. n/t

[FarCenter]

5. This is highly variable depending on the state

The states where you can walk away from mortgages will be hardest hit.

The states where you have to go through bankruptcy to discharge a judgment for the deficiency will be less affected.