Grand Rapids, MI -- (SBWIRE) -- 09/16/2010 -- Financial advisor Dennis Tubbergen has been watching the housing market and discussing this topic and many others in his online blog and in his monthly newsletter Moving Markets™. Tubbergen continues to believe the housing market cannot dramatically improve until unemployment numbers become substantially better and the widespread, excessive debt in the U.S. is dealt with in an acceptable manner.

Tubbergen, who is CEO of USA Wealth Management LLC, a federally registered investment advisory company, notes that along with plummeting sales of homes, the value of U.S. homes fell by a third from 2006 to 2009.

According to an August 24, 2010 article posted online by The New York Times, analysts anticipated a drop in July homes sales in 2010 compared to 2009 of about 13 percent due to the expiration of the tax credit for home buyers. The actual drop: 25.5 percent.

While one senior economist called the numbers ‘gut-wrenching,’ perhaps the most alarming fact is that July is typically a month when demand for homes peaks. And to make the situation worse, mortgage rates are at their lowest in decades.

“While the recent tax credit for first time home buyers may have revived this market, it did so only on a temporary basis,” explains Tubbergen. “Home sales were simply accelerated during the tax credit program as individuals looking to purchase a home did so more quickly in order to obtain the credit. The government, by initiating the tax credit, borrowed against future production or future home sales.”

Tubbergen goes on to state the massive debt being accumulated by the U.S. government is an attempt by politicians to ‘jump start’ today’s economy by borrowing against tomorrow’s production.

“Borrowing against future production only postpones inevitable outcomes,” concludes Tubbergen. “It doesn’t cause the outcomes to be avoided.”

For more information on Dennis Tubbergen’s views, visit http://www.dennistubbergen.com.

The opinions expressed herein are those of the writer and not necessarily those of USA Wealth Management, LLC. This update may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted. Therefore, no forecast should be construed as a guarantee. Prior to making any investment decision, individuals should consult a professional to determine the risks, costs, benefits and fees associated with a particular investment. Information obtained from third party resources is believed to be reliable but the accuracy cannot be guaranteed.