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NEW YORK (Reuters) - Home buying applications sank for a fifth straight week to a fresh 13-year low, the Mortgage Bankers Association said on Wednesday, suggesting that tax credits had robbed more from future sales than expected.
Without tax credit, home demand keeps slumping - Yahoo! Finance (http://finance.yahoo.com/news/Without-tax-credit-home-rb-2615378696.html;_ylt=ArZnNtv46ZPErWc2kbRWAiK7YWsA; _ylu=X3oDMTE1czJwMjBpBHBvcwM3BHNlYwN0b3BTdG9yaWVzB HNsawN3aXRob3V0dGF4Y3I-?x=0&sec=topStories&pos=5&asset=&ccode= - broken link)
Again, all the tax credit did was artificially increase prices. All people were doing was borrowing money against their new house and repaying it over what ever the length of their loan would be. Home sellers now have to sell their houses at more realistic market prices.
all these people who were enticed into a declining market because of the credit will now face an upside down situation and that will again cause another wave of defaults just exacerbating the problems. This whole tax credit program has just worsened the situation, the last thing we needed is more people buying overpriced homes and facing defaults down the line as prices fall further.
Don't worry the National Realtors Association says its a great time to buy... so everything is fine... hahahahahaha...
HAHA this is great. One thing I love is when people take advice from Real Estate agents as if they have any clue what is going on. Take advice from someone with a finance/economics degree, not somebody that's in a career where...1. They want to sell no matter what it takes and 2. they have no background whatsoever in economics. It's just mind boggling. It's like taking financial advice from a car salesman. Of course he wants you to be loaned up to your neck if it means he sells a car.
all these people who were enticed into a declining market because of the credit will now face an upside down situation and that will again cause another wave of defaults just exacerbating the problems. This whole tax credit program has just worsened the situation, the last thing we needed is more people buying overpriced homes and facing defaults down the line as prices fall further.
This is part of the correction that could have occurred last year, but instead we sit here a year later and are having it happen now. If the gov't would quit insisting on wasting money on something that will be corrected one way or the other, we could already see light at the end of the tunnel. I don't understand why the gov't wants prices to stay higher than they historically should be at? Historically it home prices pace inflation numbers (or more realistically, salary increases). Each time in history where they outpaced these numbers, they corrected themselves resulting in severe depressions. It may be possible for gov'ts to intervene and prevent recessions/depressions but it's not by fighting off the recession. The recession IS the solution. If they want to prevent recessions then they need to have better understandings of stock and real estate valuations so they can prevent bubbles form occurring, as those are the real problems. Recessions just bring those valuations back to where they are supposed to be within the economy.
Once again, this is what happens when we have lawyers who don't know a thing about economics/investing running the show and don't understand where real estate and stocks should be priced in relation to their actual value.
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duh! They must be right! 
