Tag Archives: housing crash

“Buy as much house as you can,” real estate agents urged clients. “The more you buy, the bigger your tax break” is their advice using the mortgage interest deduction (MID) to explicitly promote over-investment in housing. Unfortunately, such advice fueled the previous housing boom and exacerbated its bust and could do so again.

For the past few months, existing home sales levels have been weaker than expected. The focus, however, should not be on the weakness of the headline numbers. In actuality, the softening in existing home sales is showcasing the potential for acceleration in new home sales. [Let me expain.] Words: 1205