As we have stated in earlier posts, be skeptical of data from the National Association of Realtors and other organizations in which benefit from real estate sales. They do not hesitate to report good news but you can count on them to be silent about any bad news. Last week, the CEO of Coldwell Banker stated that right now is the best time ‘ever’ to purchase a home. This is in spite of the weak sales numbers and the shadow inventory that is soon to come on the market. Downward pressure on real estate prices is still likely to persist for some time.
In the video below, Barry Ritholtz and Michael Pento argue the likelihood of a double-dip recession. The slowing economy, the coming tax increases, and chronically high unemployment will keep interest rates low for awhile. These disturbing trends definitely raise the odds of a renewed recession in the near future.
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