Home prices drop 1 percent in November, reflecting market weakness

Analysts also argue that the market will have to work through the problems of increasing foreclosures and dropping prices before the sector can begin contributing to the overall economic recovery.

The data “point to weakness in home prices,” with eight cities setting new lows and only small increases in the positive data, said David Blitzer, chairman of the Index Committee at Standard & Poor’s.

The 10- and 20-city composites are only 4.8 percent and 3.3 percent above their April 2009 lows, suggesting that a double-dip could be confirmed before spring, Blitzer said.

On Monday, Rep. Randy Neugebauer (R-Texas), the chairman of the House Financial Services subcommittee on Oversight, said the government should abandon its efforts to save homeowners from foreclosure at a housing conference.

He said government attempts to prevent foreclosures is prolonging the inevitable for many struggling homeowners and impeding the private market.

Neugebauer said the private market should be allowed to work through the problems in the housing market without “administration pressure” to avoid foreclosures.