Tuesday, August 31, 2010

U.S. House Price Increase Likely Temporary

Though most indicators released recently indicates that the U.S. economy is weakening rapidly, today's Case-Schiller house price indicator showed strength. However, this is likely the effect of people buying homes in anticipation of the expiration of the home buyer's tax credit. As other reports have indicated a sharp drop in demand following the expiration of the tax credit, it seems likely that house prices will turn down again.