The long predicted and much anticipated double-dip in housing prices appears to have come to fruition according to data released by S&P/Case-Shiller. Prices on single-family homes in March dropped to levels not seen since March 2003 in the United States, and below the previous post housing bust low recorded in April 2009. The March figure represents a drop of 3.6% versus last year’s home prices.

Buying Foreclosures and Short Sales

Prices remain at depressed levels due to a glut of distressed properties on the market in many of the nation’s housing markets. Foreclosed homes, bank-owned houses and short sales continue to represent a large percentage of single-family home sales in many areas. These distressed properties generally sell at a discount exceeding twenty percent, affecting not only the valuations on foreclosed homes, but on those of all properties in the vicinity.

With prices at such low levels, and interest rates on home loans near historic lows, the affordability of housing is at a record high in 2011. Although real estate investors are buying foreclosures at an astonishing rate, first-time home buyers and homeowners looking to trade up to larger homes are also the beneficiaries of today’s double-dip buying opportunity. Investors are typically a step or two ahead of the market, so all signs point to a strong recovery in housing prices in the mid-term. In the near-term, prospective home buyers are encouraged to act quickly before the supply of distressed properties, foreclosed homes, short sales and bank-owned properties dries up.