U.S. Home Sales Take a Big Hit

Housing-Market / US Housing
Jun 24, 2010 - 01:40 AM

By: Mac_Slavo

For more evidence of the current deflationary trend look no further than the real estate market.



If you take a quick look at the chart above and still think a housing recovery is upon us, then the mainstream media has detonated a Weapon of Mass Distraction in your brain and you can’t be saved.

Now that the $8000 home buyer tax credit has disappeared, guess what happens?

That’s right, the housing market will continue on its decline trajectory.

Homes are a debt based asset, and the easy creation of money from 2001 to 2006 led to massive price increases - we’re talking 50% to 100% asset value rise in an asset that remained fairly price stable for about 100 years.

The system is now trying to correct this extreme upward price swing. In the last couple of years the government tried to counteract the corrective deflationary pressures in an attempt to “stabilizeâ€