Stimulus to Spur Home Sales?!

From Realty Times:

"Buyer are still hesitating on whether to enter to market, but the National Association of Realtors estimates "the impact of the stimulus package and lower interest rates on the housing market to be about 900,000 additional home sales in 2009 compared to conditions before the stimulus package."

I know the NAR's mission is to be cheerleaders for the real estate industry, but to say that the Federal Spending Spree aka: Stimulus will have anything but a negative impact on home sales is just plain dishonest. First of all, most of that money wont be spent until 2010 at the earliest. Second, the NAR needs to show specifically where in that spending is anything that can be shown to have a direct positive impact on home sales. Additionally, the unprecedented borrowing and printing of money that is coming will cause rampant inflation and drive up interest rates.

The current historically low interest rates should have already spurred home sales, but the paralyzing negative rhetoric coming out of Washington, along with the promise of higher income and energy taxes is enveloping the market in fear. Did the NAR miss the proposal to limit itemized deductions, especially on mortgage interest?

Having said that, I still believe now is the time to buy and borrow at fixed rates.