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I hate to say "I told you so."  But I'm going to.  Pending homes sales dropped in November by 16%!  Wonder why?  Well it is the same reason that new home sales dropped.  Everyone thought the government subsidy program wouldn't be around and the result was people didn't buy.  DAH!  What every economist knows and the National Association of Realtor economist doesn't seem to know is that subsidies CREATE A FALSE MARKET! 

Why don't we just let the market work itself out?  Because the NAR is a very strong political action group and Congressional leaders just can't seem to stop spending money we don't have.  On top of that because we are spending like brainless idiots the mortgage rates are predicted to go up to 6 to 6.5%.  That ought to be just wonderful for sales! 

So my advise to Lawrence Yun, the NAR economist, is quit being a economic idiot and let the market find its own bottom.  Stop propping up the market with stupid government concessions that simply drive up government debt and long term interest rates.