S&P/ Case-Shiller Housing Index Results Released.

The state of the U.S. economy is worrisome and there is a high possibility of a double-dip recession, one of the property market’s most well-known economists said Tuesday.

Robert Shiller, professor of economics at Yale University and co-developer of Standard and Poor’s S&P/Case-Shiller home price indexes, told Reuters Insider he does not know where home prices may be headed, but believes the economy may be on a precarious path.

“For me a double-dip is another recession before we’ve healed from this recession … The probability of that kind of double-dip is more than 50 percent,” Shiller said. “I actually expect it.”

Shiller said he is unclear where home prices are headed.

“I don’t know,” he said. “I am taking a “wait-and-see” attitude,” he said.

U.S. single-family home prices rose more than expected in May, reflecting robust spring sales spurred by homebuyer tax credits, the Standard & Poor’s/Case Shiller home price indexes showed Tuesday.

* L Shaped bottom and its expected that home prices will stay flat for….5 years. Flat means, little to no significant upward or downward appreciation of depreciation.

* No ‘recovery’ in the near future.

* Small uptick in home values that are being credited to the tax credit!

* Home Values are now at 2003 levels nationally.

* Foreclosures INCREASING in all major markets. Check out this survey of leading asset managers….massive increase in Bank Foreclosures and REO Listings coming.

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