Home Sales and Prices Looking at Further Decline, Say Some Analysts

home sales and prices have yet to hit bottom, say analysts
home sales and prices have yet to hit bottom, say analysts

Have home sales and prices finally hit bottom? Unfortunately, many analysts say no. A new report from Capital Economics released Monday says that recent home price increases will have little effect, since pending home sales dropped around 32 percent since the homebuyer tax credit expired in April. Moody's Investors Service says that the likelihood of a double-dip recession has increased slightly from spring, and if the double dip takes place, housing prices will drop another 20 percent with a recovery postponed 'til at least 2012.