
We have been waiting almost 18 months for the government to allow housing prices to fall to their natural market-clearing levels. First, the Federal Reserve lowered interest rates and directly purchased mortgage-backed securities, then the federal government began providing tax incentives and credits to further prop up prices, even California got into the tax credit act. And for what? Prices are still going to fall. July Existing-Home Sales Fall as Expected but Prices Rise National Association of realtors -- Washington, August 24, 2010 Existing-home sales were sharply lower in July following expiration of the home buyer tax credit but home prices continued to gain, according to the National Association of realtors®. Notice how carefully the NAr spins this disastrous headline. First, they fail to mention that the…[READ MORE]