What Tanking Home Sales Mean for the Recovery

Sales of existing homes dropped more than expected in January.


While Newport argues that the tax credit will indeed juice home sales at bit, he doesn't expect a sustainable recovery to take hold until late this year. "Our forecast has sales dropping in the first quarter of 2010, payback from the first tax credit. Sales will take a second hit in the third quarter of 2010, payback from the second tax credit," Newport said in a report. "Later in the year, as the job market improves, we expect sales to start improving on a sustainable basis."