Home buyer credits and low interest rates might tempt some brave [or foolish] souls back in the water. But the big worm in the "recovery" apple is unemployment:
The housing recovery remains weak and could take a turn for the worse if more Americans lose their jobs, analysts say.
"The market’s incredibly fragile," says Mark Zandi, chief economist at Moodys. "As long as job losses are rising, the housing market is at risk of continuing along a decline. Any recent stability would be in danger."
The unexpected drop in existing home sales for August was the latest sign of just how tentative the recent signs of recovery are.
Even people that haven’t lost jobs are likely to be concerned about the status of their own jobs or the future of the economy. Economists might have been surprised at the weakness in existing home sales, but we at Doom are not.[Thanks L!]