Housing Is Saved by Free Trade!
One of my ideas for 2011 was for a new home buyer tax give away to entice people to buy a losing asset. Maybe I was wrong. It seems the housing market will indeed be saved and start an upward trend and here is the best reason why (via Business Insider):
Don't Bet on Lower Housing Prices in 2011OMFG!
Despite the deteriorating trend, don’t bet on housing prices to fall this year. The Case-Shiller Index has a two-month lag and the most recent report is for the month of October. Since that time, we’ve had a power-shifting midterm election, an extension of the Bush-era tax cuts, an arms treaty with Russia, and a possible trade agreement with South Korea. While there is good reason to assume that housing prices could fall further, there are also encouraging signs that prices might strengthen instead because of a growing economy.
I am going to ask anyone thinking about buying a home if a possible free trade agreement with South Korea will be their tipping point for buying a home pronto. Classic stuff.
Have a good night.