July’s abrupt drop in existing-home sales produced a wave of concern in the media and in Washington. Talk was rife of a double-dip, housing recession.
In truth, the news was neither bad nor unexpected. Hopes had simply been unrealistic. Proponents had promoted the tax credit on the grounds it would kick-start the housing market.
Critics said it would simply steal future demand, at taxpayer expense.
True, existing home sales in the Boston area have been running almost 10% higher than last year, but that may be due to improved affordability.
I say the critics were right!