I’m starting to think a lot of these folks live in an alternate reality.
“The upswing in April existing-home sales was expected because of the tax credit inducement, and no doubt there will be some temporary fallback in the months immediately after it expires, but other factors also are supporting the market,” said Lawrence Yun, NAR chief economist. “For people who were on the sidelines, there’s been a return of buyer confidence with stabilizing home prices, an improving economy and mortgage interest rates that remain historically low.”
Nobody buys a house when they are dropping in price, if they can help it. Now that prices have bottomed, you’ll see a lot more people buying, even without stimulus money.
UPDATE: It’s going to be a pretty touch and go housing market for a while. There’s sooo much inventory out there, not only peope underwater, but foreclosures as well as regular turnover. It’s almost like we’ll need an influx of 10,000,000 or so new legal citizens, now able to buy homes as they have recongized legal status, to help take up the slack.
I wonder where we could find them….
It should also be noted that the NAR (National Association of Realtors) is *always* going to try and paint a cozy, cutest house on the block, picture of the market.
It’s a fallback from the line-item veto that presidents long have sought but the Supreme Court has ruled unconstitutional. In that case, Obama could simply eliminate items before signing a bill; in this case, he would sign it, then propose cuts for Congress to consider.
A similar proposal by former Republican Senate majority leader Bill Frist and Rep. Paul Ryan, top Republican on the House Budget Committee, passed the House in 2006 butreceived only 35 votes from Democrats there, while 156 opposed it. The measure never got a vote in the Senate.
My guess is that Democrats will now think this is a good ideas and the Republicans will now say it’s a socialist/communist plot to destroy the country (despite being their idea, like the individual mandate on health insurance).