December home sales down nearly 17 percent - UH OH

This can't be good for high end prices in Austin. Especially with Texas unemployment rising (and expected to continue rising)

This YOY drop is in spite of massive federal intervention to prop up real estate markets. Yikes!  This is consistent with my theory that Texas didn't avoid the recession. It merely lagged the coasts by 18 months. Real estate prices will continue to fall...

-Mr. Bubble



December home sales down nearly 17 percent - Yahoo! Finance

Home sales plunge nearly 17 percent in December after tax credit deadline extended

By Alan Zibel, AP Real Estate Writer , On Monday January 25, 2010, 10:40 am EST

WASHINGTON (AP) -- Sales of previously occupied homes took the largest monthly drop in more than 40 years last month, sinking more dramatically than expected after lawmakers gave buyers additional time to use a tax credit.
The report reflects a sharp drop in demand after buyers stopped scrambling to qualify for a tax credit of up to $8,000 for first-time homeowners. It had been due to expire on Nov. 30. But Congress extended the deadline until April 30 and expanded it with a new $6,500 credit for existing homeowners who move.

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