Housing markets: Down again | The Economist
Housing markets: Down again | The Economist.
THE homebuyers tax credit programme, it was hoped, would support housing markets by enticing buyers with a generous purchase subsidy (of up to $8,000), reducing the glut of supply and limiting additional price declines. For a little while, it seemed to work. But in the wake of the policy’s April expiration, data on sales and construction have tumbled. Price indexes for homes come out with a bit of a lag, and so obervers have wondered whether housing values might buck the trend and avoid a renewed decline.
For better or worse, it is not to be so. The Federal Housing Finance Agency released new price data today for the month of July. The figures showed sharp declines from May to June and June to July. Year-over-year prices were off 3.3% in July. More reliable price indicators, like the Case-Shiller index, will likely point toward a similar reversal in coming months.
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