As stated last month:

"April's housing price figures will be largely irrelevant as they capture the nadir of the homebuying distortion.  It is the May index results which will provide a clean gauge of the housing market's health and indicate whether the summer home buying season will be a boom or bust.  Given my expectation of a dramatic decline in artificial demand, I expect a bust."

The record collapse of housing demand in May has already been well documented.  Now we get to review the Government's influence on home prices in April.






Housing prices will not stabilize, nor will the economic malaise end, until valuations decline to sustainable levels.  By manipulating prices contrary to the market fundamentals which determine equilibrium value, the Federal Government has tragically extended The Affordable Mortgage Depression.  Policy makers must be very proud.