The median price of new and resale houses and condos sold in Las Vegas in July dropped by over $9,000 relative to (gulp) the prior month. The federal tax incentive to purchase a house was worth up to $8,000, meaning there are no doubt people in Sin City who have already had that inducement’s value wiped out. In the rush to save realtors and homebuilders, the government created a program that tempted many Americans into making a lousy investment during a sucker’s rally.
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Blog post pull quote: “In the rush to save realtors and homebuilders…”
In a rush eh?
All I’ve been reading and hearing is:
Why won’t the government do something?
And from the linked article there is this pull quote:
“Yet, the real “organic” market forces are not tricked by such tomfoolery.”
Yes…
Market forces can’t be tricked.
That’s why bubbles are such a rare thing…
koreyel, market forces can be tricked, but that tomfoolery certainly didn’t trick it.
Or it did for a very short time.
The housing bubble was quite a bit different
If they bought a home, foolishly at this point, as an investment then yes they got suckered. However if they bought homes simply for the utility of having a place to live then fluctuations in price simply do not matter in the short term AT ALL.