The housing market is flat, with 2010 home sales likely to be equal to last year’s if you subtract the effect of the tax credits, says Tom Lawler, noted housing economist.
“The home buyer tax credit goosed things in a big way,” Lawler says.
He believes that until more jobs are created, housing is likely to remain in the doldrums, but not in free fall. A significant recovery will depend on interest rates remaining affordable and limiting the number of homes in foreclosure, as well as rising employment, he says.
Source: The Wall Street Journal, James R. Hagerty (02/26/2010)