The US housing market accelerated into a double-dip recession, complicating the Federal Reserve's efforts to revive the world's largest economy. As the Fed's monetary policy committee met for the first time this year, the latest house-price figures gave a dire warning that the economic recovery to date rests on some shaky foundations.
The Case-Shiller index, widely regarded as the best overall measure of the regionally diverse US housing market, showed average prices were down by 1.6 per cent in November, compared with the same month in 2009. The index examines 20 major metropolitan areas, of which 16 are now lower, year on year. Eight of the 20 regions are already falling to new lows, from their pre-recession peaks in 2006 and 2007.