The S&P composite index of home prices in 20 metropolitan areas slipped 0.2 percent in November after a revised 0.1 percent October dip, for a 5.3 percent annual drop.
A Reuters survey had forecast a 0.1 percent November rise.
Prices were originally reported as unchanged in October.
"Up until a while ago it looked like home prices might have bottomed," said Suvrat Prakash, U.S. interest rate strategist at BNP Paribas. "There might be a double dip in home prices, which could feed through to the rest of the economy," he said, adding that housing still faces many hurdles.
So why's that double dip coming?
Several major government supports for housing are soon ending, including an extended and expanded home buyer tax credit for which buyers must sign contracts by April 30.
The end of such incentives just as mortgage rates rise and foreclosed properties start hitting the market could pressure prices anew, economists agree.
And what's the answer to this dilemma? If you said "Obama's spending freeze" congrats, you're a winner! Just like Jim Cramer said when he called the housing market bottom in July 2009.
How's that working out for ya, Jim?
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