{"id":170431,"date":"2010-01-12T10:35:00","date_gmt":"2010-01-12T15:35:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/david-rosenber-uh-oh-its-a-double-dip-in-housing-2010-1"},"modified":"2010-01-12T10:35:00","modified_gmt":"2010-01-12T15:35:00","slug":"david-rosenberg-uh-oh-its-a-double-dip-in-housing","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/170431","title":{"rendered":"David Rosenberg: “Uh-Oh” It’s A Double Dip In Housing"},"content":{"rendered":"

David Rosenberg is back on housing, and has an interesting non-Case Shiller chart to show you:<\/p>\n

Home prices: There remains a glut of at least two years supply on the market
when the ‘shadow’ foreclosed housing inventory data are included in the
calculation and home prices on average have 10-15% downside before fully mean
reverting with respect to residential rents and wage income.  This is the canary in
the coalmine when it comes to wealth, confidence, spending — and writedowns
(the market is expecting write-ups this year) in the banking sector.  The big surprise
will be the renewed turndown in the closely-watched Case-Shiller (CS) index of
home prices, which in the past two months has slowed to an average gain of
+0.25% after 1%+ advances in July-August, which gave beta-hungry investors
more reason to add risk to their portfolios.  But the CS series is a three-month
average and for all we know, the renewed price declines we expect to see may
already be occurring now.  Note that two home price series are already back in
decline for two straight months — LoanPerformance and Radar Logic.  This is key
for any sector that remotely touches the housing industry from the homebuilders,
to the financials, to the consumer discretionary group.  <\/p>\n

\"housing\"<\/p>\n

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Don’t miss: David Rosenberg’s key themes for 2010 — ><\/a><\/strong><\/p>\n

Join the conversation about this story »<\/a><\/p>\n

See Also:<\/b><\/p>\n