First Time Buyers Abundant

The figures for existing home sales came out today.Although they were strong,first time buyers accounted for 45% of the total,and about 70% of the homes sold were worth 250,000 dollars or less.Clearly the sales were driven by the first time home buyer's tax credit,which will soon expire.If the housing market is to ever recover,Congress needs to reauthorize the credit.The economy is still on unsteady footing.It is not yet time to withdraw the supports that prevented another Great Depression from materializing. Home prices declined 8.5%,another signal that the housing market has more miles to go before it can be considered restored to good health.New home sales figures come out next week,and will be closely scrutinized as well for clues to the economic condition.