There are 5 reasons why housing will lead the economic recovery in 2009. 

1. Housing is the most affordable it’s been in 15 years.  Coupled with 40 year low interest rates and the first time buyer tax credit, buyers will start buying.
2. Rates are at an all time low.  Since thanksgiving, rates have dropped the most in the shortest amount of time, ever!
3. Inventory, currently there are 19,400 homes on the market which is a huge reduction from past years.  Many people believe that there is a large ‘shadow market’ of people waiting to put their homes on the market.
4. There are fewer industry players.  The people left in the business are true professionals that know the marketplace.
5. The federal government is considering many tax policies to help stimulate the housing market.  There is currently a $7500 tax credit for 1^st time buyers that has to be paid back over 15 years.  However, congress is looking at making this a true credit and not a loan and extending this to all homeowners!  In addition, there are many policies to help with people who can’t afford their mortgage currently, making those transactions easier.

 

Written by Perry & Co Real Estate Agent Brad Colburn