Current Housing Market Double Dipping

I came across an interesting Blog article this past weekend.  Basically it references several other articles and carts.  It can be summarized as follows:

• The latest Case-Shiller data shows that housing prices in the 20 City and 10 City composite measures are down by 32 percent from their 2006 peak and nominally the worst drop since the Great Depression.
• Household income is too low to support prices even at today’s new lower levels.
• The Housing Market is in a double dipping
• Housing prices were artificially kept higher through tax credits and the Fed intervention which made home buying cheaper by placing an artificial floor.  This has resulted in a non transparent  housing market where prices are no longer based on traditional supply and demand factors.
• There is also an estimated 7 million in shadow inventory basically properties that banks are holding back on selling as they would flood the market driving prices down.
• Moody's in 2009 feels that 2006 prices will probably not be reached again until 2020 or later.
• Prices are increasing driving down the amount of disposable income available to pay for housing resulting in lower housing prices
• Many of the actions currently taken by the Fed and Banks with regard to housing prices has been done to keep bank balance sheets artificially high.

To summarize the housing market prices are falling and will continue to fall in the near term as incentives for housing by the Fed are cut, more inventory is put on the market by banks and as people's disposable income available for housing decreases.