Housing Is Even Worse Than Thought

Inquiring minds are reading a US News article on the incredible decaying housing market:

Shocking. More than three years after the housing bust began, forecasters are still overestimating the strength of the housing market. The latest sales numbers for existing homes, which took a steep, unexpected plunge, triggered a fresh bout of national gloom and stock-market selloffs. Record-low interest rates aren’t luring buyers, and neither are falling prices that are 30 percent below their peaks, or more. The pace of sales is the lowest in 15 years.

But that’s not surprising…

None of that is the shocking part, however. What’s really unnerving is that all of this has happened despite a government effort to prop up housing that has been the biggest stimulus package of them all.

The plunge in sales startled the markets because earlier this year it looked like sales were picking up. Of course that’s when the federal home-buyer tax credit was still in effect, offering buyers an extra few thousand dollars’ worth of incentives. Everybody knew sales would fall after the credit expired at the end of April, which is exactly what happened.

The rest of the article is more than worth the time to read.


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