Housing Starts Down, No Surprise

Via Calculated Risk:

"Sales in Dec 2009 (5.45 million SAAR) were 16.7% lower than last month, and were 15% higher than Dec 2008 (4.74 million SAAR)."

The 16.7% decrease month to month looks alarming at first but again, the first time home buyers tax incentive expired in November. Essentially, tax credits of this nature borrow demand from the future. People rush to buy houses before the credit expires in order to take advantage of the financial incentive. The Obama Administration recently announced another first time buyer credit, this time extended to include current homeowners. It likely won't be as effective this time around for the above reason...