I was puzzled over the huge surge. While all the numbers such as the stock market, corporate profits and general business and economic activities are rising, the one key element necessary to support such a huge increase in housing sales -- job growth -- is missing. And then I realized that the government tax credit for first time home buyers was expiring on April 30.
Just as the "Cash for Clunkers" program caused a surge in auto sales, the home buyer's tax credit is fueling the March, and no doubt, April home sales figures.
Any bets on how badly home sales figures will tank after the tax credit expires? And many expect another wave of foreclosures to hit in the second half of the year as the rates for 5 year ARMs from 2005 reset.
Selling frenzy as homebuyer credit nears end - MSNBC
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