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Housing Is Not on a Sustained Upturn
The Post noted the 6.1 percent rise in pending home sales reported for September, following the 6.4 percent increase reported for August, and told readers that housing: "is not merely leveling off but is rising at a steady clip." Actually, the sharp upturn in the last two months is likely due to the fact that the first time homebuyers tax credit was scheduled to expire at the end of November. While it now appears that this tax credit will be extended, there were undoubtedly many people who rushed to buy a home before the expiration date.
--Dean Baker
COMMENTS (8)
I wonder how long this tax break needs to exist before it becomes politically impossible to ever repeal it. In real terms housing prices will never recover (i.e. reach the levels during the bubble) so we will probably need this forever.
Posted by: Erik L | November 3, 2009 7:55 AM
See, everything is really going to be just fine. America loves its happy endings. Pay no attention to that structurally high unemployment rate and massive debt overhang. Just move along.
Posted by: some guy in a cube | November 3, 2009 8:21 AM
Erik: Depending on whether it's short term or long term, it'll happen either (1) right before I buy a house or (2) right before I sell that house.
(the recaptcha for this comment is "require $8,000", which seems remarkably apropos)
Posted by: Nathan Williams | November 3, 2009 10:46 AM
Nathan:
I closed on the sale of my house in March, '08, and have been renting since.
This means I will again qualify as a "first time buyer" in March, '11.
And THIS means the first time home buyer tax credit will expire in April, '11.
Take it from me, this WILL happen.
Posted by: Ethan | November 3, 2009 11:57 AM
Along the lines of my earlier post...
From Bloomberg:
J&J Fires at Least 7,000 as Consumer Spending Shrinks
http://www.bloomberg.com/apps/news?pid=20601087&sid=aTPrMKwL8tWs&pos=4
"Consumer demand won’t pick up until unemployment eases and people become less cautious on spending, Chief Executive Officer Bill Weldon said today on a conference call."
Posted by: some guy in a cube | November 3, 2009 4:57 PM
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Posted by: sesli sohbet | November 6, 2009 1:20 PM
weight loss tipsI closed on the sale of my house in March, '08, and have been renting since.
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