So much for Biden’s recovery summer–sales of existing homes have dropped 27%.
Sales of U.S. previously owned homes plunged 27 percent in July, twice as much as forecast, evidence foreclosures and limited job growth are depressing the market.
This is apparently twice what economists predicted. Dare I say that the degree of the decline was unexpected? Of course the reason for the decline is not a mystery.
A tax credit of up to $8,000 boosted sales earlier in the year, pulling forward demand and indicating additional advances will prove difficult. Mortgage rates at record lows have provided scant relief to the industry as unemployment hovers close to 10 percent, foreclosures hold near record-highs and the economy cools.
The tax credit was yet another example of borrowing from the future to bailout the present. That works great for the present until of course we all reach that future. The future is now.
A collection of more thoughts on the announcement at Instapundit.