Skip navigation
#headerOverlay{
color: #ccd6df;
font-size:11px;
line-height:130%;
}
#headerOverlay strong{
color: #ffd226;
}
#headerOverlay a {color:#ccd6df;text-decoration:none;}
#headerOverlay a:hover {color:#ffd226;}
#headerOverlay a:visited {color:#ccd6df;}
#headerOverlay a:visited:hover {color:#ffd226;}
Symbol Lookup
onloadAutoSuggest();
var pgValue = "CNBSEB";
var cmsKeyWord = "alternative investing";
var cmsNewPG = "CNBWAB";
if ((cmsKeyWord.length > 0) && (cmsNewPG.length > 0)) { var newPG = cmsNewPG.split(';'); var group = cmsKeyWord.split(';');
if (newPG.length == group.length) { var description = cnbc_pagedesc.toLowerCase();
for(var x = 0; x < group.length; x++) { var keyWord = group[x].split('|'); for (var j = 0; j < keyWord.length; j++) {
if (description.indexOf(keyWord[j].toLowerCase()) != -1) { pgValue = newPG[x]; j = keyWord.length; x = group.length; }}}}}
if (cnbc_DARTFlag=="new")
{
cnbc_DARTAdCall(88,31,pgValue);
} else {
dapMgr.enableACB("SearchBox88x31",false);
dapMgr.renderAd("SearchBox88x31","&PG=" + pgValue + "&AP=1071&PN=CNBC",88,31);
}
cnbc_displayUsername("cnbc_usertime","cnbc_username");RegisterSign InMember CenterSign OutRegistercnbc_toggleUserState();HOMENEWSMARKETSEARNINGSINVESTINGVIDEOCNBC TVCNBC 360CNBC PROU.S.Asia-PacificEuropeEconomyEnergyGreenTechnologyBlogsWiresSlideshowsSpecial ReportsCorrections
if (cnbc_DARTFlag=="new")
{
cnbc_DARTAdCall(728,90,"CNBGE7");
} else {
dapMgr.enableACB("USNewsBlogs728",false);
dapMgr.renderAd("USNewsBlogs728","&PG=CNBGE7&AP=1390&PN=CNBC",728,90);
}
Realty Check
var cnbcSubHeaderId = document.getElementById('subheader_'+ 33453623);
cnbcSubHeaderId.innerHTML = document.getElementById('renderReaderContent').innerHTML;
if (cnbc_DARTFlag=="new")
{
cnbc_DARTAdCall(300,250,"CNBGE3");
} else {
dapMgr.enableACB("USNewsBlogs300x250",false);
dapMgr.renderAd("USNewsBlogs300x250","&PG=CNBGE3&AP=1089&PN=CNBC",300,250);
}
RECENT POSTS» More Current DateTime: 11:24:54 23 Mar 2011LinksList Documentid: 23279692Expiration DateTime: 3/23/2011 11:27:52 AM
cnbc_commentCountMapObj.cnbc_commentCountMap_put("", "23279692_1","cnbcCommentsTxt" );
Why Housing Is Going Through a Double Dip
cnbc_commentCountMapObj.cnbc_commentCountMap_put("42231348", "23279692_1","cnbcCommentsTxt" );
Is Housing Really in Recovery?
cnbc_commentCountMapObj.cnbc_commentCountMap_put("42216840", "23279692_2","cnbcCommentsTxt" );
Market Scoffs at Pitiful Home Sales
cnbc_commentCountMapObj.cnbc_commentCountMap_put("42196413", "23279692_3","cnbcCommentsTxt" );
Spring Real Estate Lessons; Too Early for Conclusions
cnbc_commentCountMapObj.cnbc_commentCountMap_put("42151548", "23279692_4","cnbcCommentsTxt" );
Mortgage Reform: Let the Games Begin
cnbc_commentCountMapObj.cnbc_commentCountMap_put("42132670", "23279692_5","cnbcCommentsTxt" );
Credit Crunch Has Home Builders Sleepless in Seattle
cnbc_commentCountMapObj.cnbc_commentCountMap_put("42110876", "23279692_6","cnbcCommentsTxt" );
Investor Safe Haven: Apartment REITs
cnbc_commentCountMapObj.cnbc_commentCountMap_put("42091683", "23279692_7","cnbcCommentsTxt" );
How Catastrophe in Japan Could Affect US Mortgage Rates
cnbc_commentCountMapObj.cnbc_commentCountMap_put("42072905", "23279692_8","cnbcCommentsTxt" );
Spring Realty Check: Condo "Collusion" in Miami?
cnbc_commentCountMapObj.cnbc_commentCountMap_put("42071203", "23279692_9","cnbcCommentsTxt" );
Paperwork Issues Still Stall Foreclosures
cnbc_commentCountMapObj.cnbc_commentCountMap_put("41998996", "23279692_10","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("", "23279692_1","cnbcCommentsTxt" );
MOST SHAREDCurrent DateTime: 11:24:49 23 Mar 2011LinksList Documentid: 31330905Expiration DateTime: 3/23/2011 11:27:45 AM
cnbc_commentCountMapObj.cnbc_commentCountMap_put("", "31330905_1","cnbcCommentsTxt" );
Why Housing Is Going Through a Double Dip
cnbc_commentCountMapObj.cnbc_commentCountMap_put("http://www.cnbc.com/id/42231348", "31330905_1","cnbcCommentsTxt" );
Looking to Buy a Japanese Car After the Disasters? Here's What You Need to Know
cnbc_commentCountMapObj.cnbc_commentCountMap_put("http://www.cnbc.com/id/42232312", "31330905_2","cnbcCommentsTxt" );
Events in Europe 'Coming to a Head': Bond Manager
cnbc_commentCountMapObj.cnbc_commentCountMap_put("http://www.cnbc.com/id/42232259", "31330905_3","cnbcCommentsTxt" );
Portugal Debate
cnbc_commentCountMapObj.cnbc_commentCountMap_put("http://www.cnbc.com/id/15840232?video=3000012443&play=1", "31330905_4","cnbcCommentsTxt" );
The 10 Best Selling MLB Jerseys 2010
cnbc_commentCountMapObj.cnbc_commentCountMap_put("http://www.cnbc.com/id/42229588", "31330905_5","cnbcCommentsTxt" );
The iPad Is Tops With Doctors
cnbc_commentCountMapObj.cnbc_commentCountMap_put("http://www.cnbc.com/id/42218296", "31330905_6","cnbcCommentsTxt" );
US Approaching Insolvency, Fix To Be 'Painful': Fisher
cnbc_commentCountMapObj.cnbc_commentCountMap_put("http://www.cnbc.com/id/42209447", "31330905_7","cnbcCommentsTxt" );
General Mills Warns Of Further Price Hikes; Shares Fall
cnbc_commentCountMapObj.cnbc_commentCountMap_put("http://www.cnbc.com/id/42231299", "31330905_8","cnbcCommentsTxt" );
Oil Above $105 After US Supply Report
cnbc_commentCountMapObj.cnbc_commentCountMap_put("http://www.cnbc.com/id/42221041", "31330905_9","cnbcCommentsTxt" );
Big Hopes For Big Lots?
cnbc_commentCountMapObj.cnbc_commentCountMap_put("http://www.cnbc.com/id/42233677", "31330905_10","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("", "31330905_1","cnbcCommentsTxt" );
LATEST FROM OUR BLOGS» MoreCurrent DateTime: 11:24:50 23 Mar 2011LinksList Documentid: 23452000Expiration DateTime: 3/23/2011 11:27:40 AM
cnbc_commentCountMapObj.cnbc_commentCountMap_put("", "23452000_1","cnbcCommentsTxt" );
Coaching Carousel Makes "?March Madness' Tougher For Smaller Schools
cnbc_commentCountMapObj.cnbc_commentCountMap_put("42234264", "23452000_1","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("42234264", "23452000_1","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("", "23452000_1","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("", "23452000_2","cnbcCommentsTxt" );
'Strong Buys' in the Energy Sector: S&P Analyst
cnbc_commentCountMapObj.cnbc_commentCountMap_put("42231394", "23452000_1","cnbcCommentsTxt" );
The Worst Company in America
cnbc_commentCountMapObj.cnbc_commentCountMap_put("42233829", "23452000_2","cnbcCommentsTxt" );
Big Hopes For Big Lots?
cnbc_commentCountMapObj.cnbc_commentCountMap_put("42233677", "23452000_3","cnbcCommentsTxt" );
Schork Oil Outlook: NatGas Bears Running Out of Steam?
cnbc_commentCountMapObj.cnbc_commentCountMap_put("42233126", "23452000_4","cnbcCommentsTxt" );
Coming to a Ballpark Near You "” Food Network Branded Sandwiches
cnbc_commentCountMapObj.cnbc_commentCountMap_put("42233089", "23452000_5","cnbcCommentsTxt" );
Looking to Buy a Japanese Car After the Disasters? Here's What You Need to Know
cnbc_commentCountMapObj.cnbc_commentCountMap_put("42232312", "23452000_6","cnbcCommentsTxt" );
General Mills Warns Of Further Price Hikes; Shares Fall
cnbc_commentCountMapObj.cnbc_commentCountMap_put("42231299", "23452000_7","cnbcCommentsTxt" );
Treasurys Should 'Definitely' Be Shorted: Chief Investor
cnbc_commentCountMapObj.cnbc_commentCountMap_put("42230517", "23452000_8","cnbcCommentsTxt" );
Why Housing Is Going Through a Double Dip
cnbc_commentCountMapObj.cnbc_commentCountMap_put("42231348", "23452000_9","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("", "23452000_2","cnbcCommentsTxt" );
TOP HEADLINES» Markets | Economy | CompaniesCurrent DateTime: 11:24:25 23 Mar 2011LinksList Documentid: 23452764Expiration DateTime: 3/23/2011 11:27:24 AM
cnbc_commentCountMapObj.cnbc_commentCountMap_put("", "23452764_1","cnbcCommentsTxt" );
Weak Trading Could Hurt US First-Quarter Bank Results
cnbc_commentCountMapObj.cnbc_commentCountMap_put("42232498", "23452764_1","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("42232498", "23452764_1","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("", "23452764_1","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("", "23452764_2","cnbcCommentsTxt" );
Why the US Housing Market Is Likely to 'Double Dip'
cnbc_commentCountMapObj.cnbc_commentCountMap_put("42231348", "23452764_1","cnbcCommentsTxt" );
Stock Market Is Only Halfway Through Its Bull Run: Birinyi
cnbc_commentCountMapObj.cnbc_commentCountMap_put("42228291", "23452764_2","cnbcCommentsTxt" );
Portugal Braces for Government Collapse Over Debt Vote
cnbc_commentCountMapObj.cnbc_commentCountMap_put("42233910", "23452764_3","cnbcCommentsTxt" );
Oil Above $105 After US Supply Report
cnbc_commentCountMapObj.cnbc_commentCountMap_put("42221041", "23452764_4","cnbcCommentsTxt" );
Bernanke: Reforms Rein in Big Banks, Help Small Ones
cnbc_commentCountMapObj.cnbc_commentCountMap_put("42232502", "23452764_5","cnbcCommentsTxt" );
10 Best-Selling Baseball Jerseys
cnbc_commentCountMapObj.cnbc_commentCountMap_put("42229588", "23452764_6","cnbcCommentsTxt" );
Gaddafi: West Will End in 'Dustbin of History'
cnbc_commentCountMapObj.cnbc_commentCountMap_put("42223913", "23452764_7","cnbcCommentsTxt" );
Bomb Rocks Jerusalem Bus Stop, Killing Woman
cnbc_commentCountMapObj.cnbc_commentCountMap_put("42229244", "23452764_8","cnbcCommentsTxt" );
Video: Town Hall Brawl, 100 mph Winds in Colorado
cnbc_commentCountMapObj.cnbc_commentCountMap_put("http://www.cnbc.com/id/15840232/?video=3000012430&play=1", "23452764_9","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("", "23452764_2","cnbcCommentsTxt" );
REALTY CHECK VIDEO» MoreCurrent DateTime: 11:24:35 23 Mar 2011LinksList Documentid: 30871294Expiration DateTime: 3/23/2011 11:27:34 AMHousing Double-Dip? 45 mins ago
Insight on whether housing is really going from bad to worse, with Jack McCabe, McCabe Research and Consulting, and CNBC's Diana Olick.
Realty Check 2 hrs ago
CNBC's Diana Olick has an update on the real estate market, including a plunge in February new home, inventories at an 8.9 month supply, and mortgage and refi applications up 2.7 percent in the last week.
New Home Sales 4 hrs ago
CNBC's Rick Santelli & Diana Olick break down the numbers from February.
Reality Check: Home Prices Fall 22 Mar 2011
CNBC's Diana Olick takes a look at home prices, which fell 3.9 percent in January (year over year), a drop in commercial real estate prices and energy's impact on home buyers.
Realty Check 22 Mar 2011
The impact of the global events in Japan, Libya and the Middle East on the housing market in the U.S., with CNBC's Diana Olick.
Realty Check: Existing Home Sales Plunge 21 Mar 2011
CNBC's Diana has an update on the real estate market, including a plunge in sales of existing homes and a drop in prices year over year.
RSS FEED» HelpCurrent DateTime: 10:20:27 23 Mar 2011LinksList Documentid: 30871303Subscribe to this RSS feed
Stay up to date with Realty Check.
dapMgr.enableACB("Context300",false);
dapMgr.renderAd("Context300","&PG=CNBAL3&AP=1089&PN=CNBC",300,250);
setDefault('cnbc_textbody');Why Housing Is Going Through a Double Dip Published:
Wednesday, 23 Mar 2011 | 11:37 AM ET Text Size By: Diana OlickCNBC Real Estate Reporter
window.fbAsyncInit = function() {
FB.init({appId: 'your app id', status: true, cookie: true,
xfbml: true});
};
(function() {
var e = document.createElement('script'); e.async = true;
e.src = document.location.protocol +
'//connect.facebook.net/en_US/all.js';
document.getElementById('fb-root').appendChild(e);
}());
var sUrl = window.location;
var str = ''
$(".fbButton").html(str);
//alert("1 :::: " + jQuery("#ssShare").length);
Twitter
cnbc_createTwitterURL();LinkedIn
addthis_pub = 'cnbccomrssfeeds';
addthis_hide_embed=false;
addthis_options = 'linkedin, digg, delicious, google,facebook,more';
More Share
AP
The sales pace of newly built homes is now at the lowest on record.
Sales dropped nearly 17 percent in February after a big drop in January. Put that on top of the nearly 10 percent February drop in existing home sales reported earlier this week and the incredibly low level of mortgage purchase applications, and you get a clear case for a double dip in housing.
Remember, this number from the Census is based on contracts signed in February, not closings, like the existing home sales number from the Realtors. That means it is a real indicator of how the Spring market is starting.
"Further, the plunge in new home prices [down 8.9% year over year] does not bode well for existing sales prices in February, which will close in March and April and be reported by NAR in April and May," notes analyst Mark Hanson.
I really don't have to tell you that, since the vast majority of you voting on the blog cast the double-dip vote yourselves. The question now is: How long will it last? As I noted yesterday, more than a hundred economist and housing types surveyed by MacroMarkets said there would not be real recovery in housing until 2013.
I want to talk pros and cons.
The pros are that the job market is slowly recovering. Jobs are key to housing, and while employment isn't going gangbusters, it is at least going in the right direction. Another pro, though not for builders, is that housing starts are still really really low, which will help existing home sales, the bulk of the market.
"It allows the market to further purge itself of the inventory of existing homes as we don't need more new homes right now," notes Miller Tabak's Peter Boockvar.
Another pro: Affordability.
It's better than it's been in a long time, and with supply as high as it is, buyers can negotiate great deals on organic and distressed properties alike.
Low mortgage rates. Yes, it's super hard to qualify, but at least we don't have a rate spike...although that depends entirely on quantitative easing's future and new risk retention rules, so stay tuned on that.
Unfortunately the cons are going to prevail for a while:
Supply supply supply. Too much. Can't overstate that. Foreclosures. Banks are pushing properties through the foreclosure process at a really rapid pace now. I'm also hearing they may be ramping up sales ahead of any settlement with nation's attorney's general over the so-called "robo-signing" paperwork scandal. More foreclosures on the market means more supply and more price pressure. Gas prices: See yesterday's blog post. It's real. Mortgage applications. They are way below historical norms. All cash buyers in February rose to a record 33 percent of all buyers of existing homes. Many many Americans simply can't qualify for a mortgage anymore at a reasonable rate. FHA: Next month the cost of an FHA loan goes up yet again. FHA loan volume dropped 26 percent in February month to month. Consumer sentiment: Awful. No confidence in this market. Only the investors are out in droves, looking for and getting bargains. We need them, but we need real buyers as well.
You think I'm a bear? I'm a realist. I've been warning of a double dip for months, as many of you 'disagreed' with me on the blog. At the turn of the year, hearing about some energy in the market and some improving sales numbers at least, not prices, I tried to look at the bright side; perhaps things were improving with more jobs and more buyer traffic? You all didn't seem to like that either. Well I'm calling it like I see it now, and I see a double dip.
RELATED LINKSCurrent DateTime: 10:20:27 23 Mar 2011LinksList Documentid: 42231590New Home Sales At Record LowWhy New Home Sales Are So BadIs Housing Really in Recovery?
Questions? Comments? document.write("");document.write("RealtyCheck"+"@"+"cnbc.com");document.write(''); And follow me on Twitter @Diana_Olick
Read Full Article »
