Double Dip in Housing? Depends on What You Mean by Double Dip

When the International Monetary Fund warned of a potential double dip in the housing market last week, it raised the question yet again of what would constitute a double dip, and how will it affect homeowners?

The IMF pointed to the fact that, while signs of recovery are stronger than expected, the backlog in foreclosures and the number of mortgage holders that are still underwater, as well as still-high unemployment, "pose risks of a double dip in housing."

Indeed, with even the rich choosing strategic default over mortgages on McMansions, and celebrities selling at a discount, it would seem that the housing market is still struggling to gain momentum. While the tax credit moved some inventory in the months prior to its expiration at the end of April, sales came to a screeching halt, and even though mortgage rates are at historical lows, tougher lending rules and gun-shy buyers are pushing a big "pause" button on house sales.

But does this mean a double dip in the housing market is in our future?