Hello neighbors,

These days one of the major questions surrounding the real estate market is whether the market will experience a double dip or not? In recent reports, it was found that for every home currently on the market, two homes are waiting patiently for buyers.

It seems that many economists are split when it comes to determining whether the market is heading towards a double dip. Those who believe this argue that due to the tax credit, the rush of buyers contributed to the 29% increase in home sales until the expiration of the tax credit in April. However, home sales plummeted by 33% the next month after the expiration of the tax credit. In addition, pending home sales took a 30% dip in June.

Also, there was a rise in the foreclosure inventory rate from 4.5% to 4.6% during the first quarter as well as the delinquency rate from 9.5% to 10.1%.

Economists who believe the market will experience a double dip also feel the only reason existing home sales did not feel the blow is because they are measured at the contract closing opposed to the signing stage.