More on the Double-Dip

The National Association of Homebuilders blog has a great piece on the recent Case-Shiller Housing Price Index. It explains why the recent release is not as catastrophic as some have made it out to be:

"The high volatility in house prices over the past 20 months is a side effect of the government assistance programs that have attempted to stem the decline in house prices and assist the recovery in the housing demand. The introduction and subsequent expiration of homebuyer tax credits provided a short boost to housing demand followed by a downturn. Overall, the tax credits were effective in stopping the free fall in house prices, and, despite the volatility in the HPI over the past 20 months, have led to an increase in overall house prices, with the CS20 index up 4% and the CS10 up 6% from their low in April 2009."

Read the full article here.