Tuesday, March 30, 2010

Housing Prices Flat Year-over-Year

And to get here all it took was subsidized financing (i.e. $1.25 Trillion in mortgage purchases by the Fed), the bailout of Fannie / Freddie / banking system, 0% fed funds, tax credits, and new home supply at 50 year lows.

But as I've asked before, what happens going forward? At some point the market must reflect supply / demand at a "natural" clearing price. And that clearing price will depend on how sustainable the recovery truly is.

Source: S&P