“The housing market is undermining the already faltering wider economic recovery. With the increasingly inevitable double-dip in prices yet to come, things could yet get a lot worse.” explained Paul Dales, a U.S. economist with Capital Economics.
One of the main causes of the sharp decline since last month, is that July was the first month in which first time home buyers could not get an $8,000 tax credit toward the purchase of a first home. As for what is predicted in the coming months, no one can say with certainty. However, most experts predict that sales will remain low for at least a few more months due to the end of the tax credit.
