Rich is surprisingly upbeat on recent developments in the real estate market, explaining on Recessionwire that “first-time homeowners flooded the market in September, sending the number of home resales up 10.1 percent. The uptick may also have reflected a desire to qualify for an $8,000 first-time homeowner tax credit that was extended to April 2010. Does it matter that those sales were cheaper than a year ago, by 7.1 percent? We think that’s excellent news for the buyers, but from a big-picture view, more money funneling through the economy is what strengthens it, not less. Good news out today, however: The Case-Shiller Index reports that prices are trending upward.”
Of course, real estate is a fickle friend. According
to the Associated Press, “a record 2.8 million households were threatened with foreclosure last year, and that number is expected to rise this year as more unemployed and cash-strapped homeowners fall behind on their mortgages.”
Not good for real estate prices… and certainly not good for the millions of individuals and families affected.
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