A False Bottom?

by Patrick Appel

First-time home buyers are rushing to buy a home before November 30th to get the $8,000 federal tax credit. CalculatedRisk thinks this is unsustainable:

Expect a surge in existing home sales (and some new home sales) over the next few months. Expect prices at the low end to rise (simple supply and demand). Expect all kinds of reports that the bottom has been reached. Expect the frenzy to end ...