As the end of the home buyer tax credit neared last month, we all argued whether or not the increase in sales and the relative price stabilization could survive on their own.
The first clues indicate the answer is: No.
One full week after the tax credit's expiration, mortgage applications fell 9.5 percent; this as mortgage interest rates dropped below 5 percent.
Sure, refis jumped, but that doesn't help us much with the currently bloated inventory of homes on the market.
Another report today from Trulia.comshowed home sellers losing that little bit of ground they had recently gained in pricing. The number of properties on the market as of May 1st that saw at least one price cut rose 10 percent. (See Trulia's chart below.)