By all indications, housing is heading for a double dip. The dramatic fall in new home and existing home sales in July along with the increase in the inventory of unsold houses will almost certainly be followed by a new decline in housing prices in a few months' time.
A double dip in housing will add yet another drag to an already weakening economy, further eroding consumer confidence and precipitating a new round of bank failures. In this sense, housing is a leading indicator -- of another recession.