Truly shocking news this week for our real estate industry.

Weakness across the US. Biggest weakness in all home prices other than ‘first time buyer’ (or investor) ranges. The much hoped for uptick in spring home sales won’t happen.

Bottom line: its going to get worse before it gets better. Be ready..

* Double Dip in home values is here. Home values are falling faster…by a larger percent NOW than anytime in the last 12 months. In other words, massive negative momentum.

* Newly built homes plunged 17%. 250,000 new homes sold in Feb..a new record low.

* New and existing home prices down. New homes down 9%. Spread is nearly $60,000 between a new home and a resell. Killing new construction.

* Mortgage apps are at record lows

* 33% of all buyers are cash.

* FHA loans are getting more expensive in April.

* More foreclosures coming in the next 30-60 days. Banks are speeding up the paperwork.

* Huge inventories. 5-6 year supply of homes for sale. Enough homes for sale NOW to supply the market for the next 5-6 YEARS. That is not taking into account the number of homes coming on the market..shadow inventory.

* Homes have depreciated more during THIS housing crash than even The Great Depression.

* The most striking numbers: vacant homes. The 1990 census found 10.3 million vacant, and 10.4 million in 2000; in 2010, 15 million were empty.

* Gary Shilling expects home values to fall…nationally…by ANOTHER 20%!

And now, to the Video..

New home sales fell to a historic all-time low and all signs seem to be pointing to a double dip in the housing market, reports CNBC’s Diana Olick. Brian Westbury, First Trust Advisors, and Gary Shilling, A. Gary Shilling & Co., discuss.

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