Academic

CHANGE: Price of single-family homes drop for sixth straight month. This is actually good news, si?

By Glenn Reynolds

CHANGE: Price of single-family homes drop for sixth straight month. This is actually good news, since that’s what it will take to clear the market, but it also means a lot of families are seeing a major deterioration in household wealth. And things may be worse than they look: “The recent weakness in prices is disappointing given record-low mortgage rates and a home buyer tax credit that helped boost sales through the first few months of this year, analysts said. The tax credit expired last month, and home sales are expected to decline in its absence.” Take away the subsidies and the decline may be more pronounced.

Full post as published by Instapundit.com on May 26, 2010 (boomark / email).