Prices of single-family homes in the USA gained 0.3% in June from May, according to Standard & Poor’s / Case Shiller.
“This is the last hurrah for the tax credit,” said Gary Shilling, president of A. Gary Shilling & Company.
It always amazes me how the media can even take POSITIVE news and spin it negatively. Increased sales activity (THE NUMBER OF HOME SALES) was directly impacted positively by the tax credit of up to $8,000, but to claim price increases were due entirely to the tax credit is overreaching. While the INCREASED sales activity may have helped to stabilize prices; the price increase was simply a small step off the floor.
Media reports are becoming a self-fulfilled prophecy, unfortunately.
What truly is necessary to pull this country out of this great recession is JOBS! Without a job (or the risk of losing one) people don’t spend money! The economy is stalled – the government needs to finance infrastructure project and R & D labs for the betterment of today as well as tomorrow!