realtors lament low demand, low supply, and collapsing first-time homebuyer market dlvr.it/42Gddg The tax credit stimulus of 2009-2010 prompted many potential buyers to accelerate their plans to purchase homes to take advantage of the tax credits. Many people paid 5% to 10% more just to gain the tax credit that was a small fraction of the additional price they paid. When this stimulus was removed from the market, quite predictably, housing demand collapsed, prices rolled over, and we had 18 consecutive months of falling price. In 2011 and 2012 in response to the lack of demand, the federal reserve launched Operation Twist to drive down long-term rates with hopes of lowering mortgage rates further to stimulate housing demand. As a result of this temporary manipulation of mortgage rates, housing demand did increase, and when combined with f ho
Posted on: Thu, 26 Sep 2013 05:12:48 +0000
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