Expect long recovery for home sale

Existing home sales may continue to drop once the first-time homebuyer tax credit expires, Stan Humphries, chief economist for Zillow, told NBC. Yesterday, the National Association of Realtors reported that existing home sales — which had been at elevated levels — dipped in June. Humphries said the tax credit, for which the contract deadline was April 30, had increased demand, driving sales up. But the extended closing deadline is Sept. 30, and he said he expects a decline in home sales followed by a long period of flat appreciation rates for upwards of three years in the wake of the credit.