Friday, August 21, 2009

Skeptical about home sales data

Existing home sales are up nationwide, but I'm not convinced that it means that "The housing market has decisively turned for the better," as the National Association of Realtors' chief economist says.

I think a lot of the demand for these homes is coming from the tax credit, and that there is a high likelihood sales rates will drop again beginning next year. I guess that is too far out to really predict, and the economy could pick up enough by then that demand could naturally continue. I doubt it, though.

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