I didn’t think I was going out on a limb when I hypothesized that home prices would fall after the original October 31 tax credit deadline in this article from last fall. Here is an excerpt of what I wrote:
“But what do you think will happen the day after the credit expires? yeah you got my drift – there will likely be a demand vacuum and I would hypothesize that you could get more than $8,000 off of an asking price AFTER the credit ends, when fewer buyers are around – especially if it’s offseason. It looks like they might expand the credit until June 2010 – just as the Spring home buying season ends – therefore, next summer might be a good target time to start making offers, unless we have the usually awful and slow winter (when I bought my home).”
Apparently, what I predicted is happening. read CNBC here:
or watch here:
It usually doesn’t pay to follow the pack in investing…unless you’re a skilled momentum trader i suppose!