Aug 10
26
I’m not worried about the “plunge” in home sales in July. Let me go out on a limb to predict that August’s numbers will run low as well. It was predictable and should have been expected. All that happened is that many buyers who would have purchased a home now or in the Fall simply pushed up their plans to take advantage of the home buyer’s tax credit. By the end of the year, we should see a level of home sales somewhere in between the frenzied pace of the springtime, and the low levels of July. This will be close to whatever becomes “the new normal.”
Some people have said that with the reduced demand, prices must fall. Followers of Friday Figures know that they already have locally.
No, I am not worried about reduced home sales “sinking the economy into another recession.” With unemployment where it is, I think that the current recovery is little more than smoke and mirrors from government economists.
