Home prices rose in the month of August. Although there has been stabilization in Home prices, economist feel that with the increasing unemployment rate and the expiration of home-buyer tax credit this could cause a decline. But for now in 20 metropolitan cities, home prices rose 1 percent. With low interest rates, cheap foreclosure properties and tax credits for first time-home buyers, economists believe there is an end in sight.
2 comments:
This article makes me wonder if the tax credit for first-time home buyers was implemented too soon in the recovery process. What the market needs is to find the bottom so that it can stabilize and improve. However, if another drop is expected, the credit may not have as much of an effect as it could have had if it was in effect when prices were closer to the bottom. It seems like it will end up just like the Cash for Clunkers program--costing a lot and helping for a short time, but not doing much in the long run.
I agree, I think one of the most important things we need to think about is the long term effects of the programs that are being implemented to help in the recovery process. If the effects are only short term, then maybe they would help boost consumer confidence, but in the end not much is accomplished.
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