I’ve been reading about fears about a double dip recession but I recently began to read about a double dip in the housing market. I live in one of the states most severely affected by the housing bust and so this has me a bit worried. We have plans to move next summer and if the housing market takes a double dip, we are going to need to reassess our plans.
I’m not an alarmist, I don’t think the economy will collapse and I don’t have six months of food rations stored but I am a realist and I do see the possibility of another tank in the housing market. We saw some growth earlier this year but as soon as the federal tax credit for new homebuyers ended, our market started to trend downward yet again.
Here is an excerpt of an article that appeared last month on the Bloomberg Businessweek site:
The U.S. housing market will experience a second recession, forcing banks to post additional loan-loss reserves, analyst Meredith Whitney said.
“Most investors are not baking in a double-dip in housing,” Whitney, founder of New York-based Meredith Whitney Advisory Group, said today in an interview on CNBC. “You’re going to see banks post additional reserves associated with this double-dip in housing, and that means weak performance going forward.”
Our payment on our existing mortgage is well within our means and so from a financial perspective we can absolutely wait out the housing crisis storm. However, the kids have some special health care needs and would be better served in a different school district. Due to these health care needs, we can’t enroll them under an out of boundary exemption. The school they attend now is great but isn’t set up to properly address their needs. I hope that the forecast of a double dip housing market doesn’t come to fruition.
Photo: The Truth About…/Flickr
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