Home price rebound? Not exactly …
The headlines on housing today offered some good news about home prices: they rose in June for the third straight month.
But while the scene in the rear-view mirror was hopeful, the road ahead still looks pretty rocky.
June, you’ll recall, was the last month the government offered an $8,000 tax credit to first-time homebuyers, sending house hunters flocking to the market. Unfortunately,home sales plunged after the credit expired. Some housing analysts worry that the credit just sped up sales that would have happened anyway, stealing demand from the second half of the year.
It’s the second time the Obama administration has offered the credit to jump-start the market – with only limited success. A third round is under consideration, but the White House hasn’t yet decided whether to go ahead with it.
Life Inc. – Home price rebound? Not exactly ….
With more than 12 months worth of inventory looking for buyers, foreclosures are still flooding the market with new homes; bankers are listing them at discount prices to sell them quickly. A stubbornly high unemployment rate is keeping millions of potential homebuyers on the sidelines. All of which could send house prices back down again.
Stumble Upon
Del.icio.us
Buzz
