Major US cities registered improvements of up to 4.2 percent for single-family homes in the month of June but many economists remained wary that the spike was temporary and mainly due to the April expiration of the federal-sponsored home buyer tax credit.
Should that be the case then the inevitable tumbling of home prices would hit back soon and experts said that the plunge this time could cut a lot deeper.
A Bloomberg News survey showed that economists had only projected a 3.5 percent upward movement yet the surpassing mark delivered in June failed to dampen lingering worries that the worst has had its share of good times as experts pointed to an alarming indicator that despite the supply surplus and low mortgage rates, home prices continued sliding since the tax credit became unavailable.
Industry experts also noted that the June data also carried sales report from April and May, which were still covered by the tax credit, prompting Mitchell Hochberg of Madden Real Estate Ventures to exclaim that “the report shows the ship is dead in the water now that the home buyer tax credits have expired.”