Wednesday, January 27, 2010

New Home Sales

New Home Sales plunge 7.6% for the month of December.  It's the lowest reading since March, the peak of the pessimism. (So far)

It appears the home buyer stimulus euphoria is beginning to wear off.  Perhaps buyers have figured out that an $8,000 home buyer credit helps sellers, not buyers.  As soon as the credit goes away the home prices will fall by that amount, leaving the buyers stuck with their very own underwater mortgage.

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