Why Housing Prices Will Keep Dropping in Value

by Alexander Green, Advisory Panelist

Good news has been swirling around the housing market lately.

The Commerce Department reported on Wednesday that sales of new U.S. homes surged 9.6% in July.

A week before, the National Association of Realtors reported that previously-owned home sales in July jumped at the fastest rate in 10 years.

Realtors are now reminding us that sales have risen for four consecutive months. Thanks to low interest rates and government incentives, they tell us, housing prices will soon be heading back up.

Don’t bet on it…

I was in real estate for years. Asking my colleagues whether prices were likely to head higher was like asking the Army Corp of Engineers whether a river needed a bridge.

The answer was a foregone conclusion.

In many ways, this is understandable. Real estate agents