By FITSNews || Existing home sales fell in February for the third consecutive month – and hit their lowest level in eight months – prompting concerns about the “recovery” of an American housing market that’s been artificially propped up by government subsidies. Should the housing market collapse further, economists are fearful it could take a devastating toll on the nation’s economy.
Existing home sales dropped by six-tenths of a percentage point in February to a seasonally-adjusted rate of 5.02 million, according to data released Tuesday by the National Association of Realtors. That’s obviously bad news for the federal government, which was betting that an extension of its tax credit program for first-time home buyers would prop up demand.
“When you look at the fundamentals, I don’t think the market has even stabilized,” Columbia, S.C. realtor Whit Suber told FITS. “And there’s only two ways to turn it around – cheap, easy credit, which isn’t coming around for a long time, or the infusion of cash.”
Economists are concerned that the failure of the housing market to rebound could create a “double-dip” recession, which would be interesting when you consider that the government told us six months ago that the recession was over.
Yeah … right!
Also, where’s Barney Frank on this? You know … since he managed the last housing crisis so well.
By jerry March 23, 2010 at 7:53 pm
Why would anyone dare make any big expenditures while we have such hydrophobic socialists controlling our government?
By Recovering Lobbyist March 23, 2010 at 9:23 pm
Actually, I think the fundamentals are coming back to real estate. Bank regulators are over reacting right now, but they will lighten up eventually.
Then, if you have means like, you know, a job and good credit, you can get a loan and buy a house. What we experienced was free and easy credit, and people without means were buying houses. These are the same people who are losing their houses now.
The market will find its equalibrium. Already a lot of the excess inventory has been absorbed and construction is starting to pick back up. Progress is going to be slow, but this too will pass.
By beetrave March 23, 2010 at 9:43 pm
Will, you should remove the word “news” from the title of this blog, which has degenerated into a bunch of neener-neener-suck-my-wiener playground taunts at a few of the same old targets. I may not agree with your point of view, but I do value what you write when you do report news that is not found in our more established local print and broadcast outlets. But you aren’t doing it. Maybe you could have had a real conversation with Whit Suber about what he calls the “fundamentals” in the local real estate market. It seems, though, that you’d rather suck down another hit from the bong and take a swipe at Barney Frank. Yawn. Even the stupid rumors about state Republican politics don’t have much substance anymore.
So much for the internet providing an alternative to print journalism. I guess I won’t cancel my subscription to La Socialista just yet.
By BIN News Editorial Staff March 24, 2010 at 12:19 am
beetrave knows sic(k) willie very well. Our Funding Editor particularly likes the reference to “neener-neener-suck-my-wiener” which totally reflects sic(k) willie’s minimal one track thought process.
By fitsnews March 24, 2010 at 1:18 am
beetrave-
there’s also dozens of reporters at la socialista and just one of me. i try to cover what’s important and interesting in a big world quickly, succinctly and in a manner consistent with my libertarian beliefs.
if you want in-depth government fellatio and liberal fiction, then by all means keep your socialista subscription.
-will
By Ynotfirst March 24, 2010 at 7:56 am
sic, you do a great job that no other source is doing.
Hey Jerry- why buy now? Great Interest Rates 4.87%
By lars March 24, 2010 at 8:46 am
Ynotfirst,
Ain’t got no money, that’s why. The government has its grubby hands in every pocket of my breetches…
By MOHANNA March 24, 2010 at 12:13 pm
Will, I expect you to share that Bong. That’s right, the Bong was the most interesting and relevant thing in this posting. Show Business is my life.