Housing market is back in Business!

Recently many of Americans have been forced out of their homes due to foreclosures with record numbers in job losses and a downfall in the economy. Finally we are starting to see some relief and encouragement that better times are coming. In February there was a 5% increase in established home sales. Why you may ask? People are jumping on the low, low prices that are being offered to buyers. Many houses have cut their profits just to get out from under their payments, or they have decided to downsize. Many people are being foreclosed houses and with the little that they invest in them they have more money to spend on fixing them up how they want it, which will also create higher revenue for stores such as PotteryBarn, Pier 1 and Home Depot who have all also been affective buy the economy. Many banks are slowly getting out of the mess that they were in which is allowing people to be able to receive loans. However the loans are a lot harder to receive now, so you need to be completely qualified to receive one. Banks are making sure that the people they are letting loan out money is good for so that they can prevent future foreclosed houses and losses for the bank. With President Obama's help with refinancing rates and loans for home buyers it has also helped people save on their payments.
Overall with lower rates and extra incentives for buying people now spend their days driving around new areas or looking online for a future home. The bracket that has seen the most increase was the houses that are priced under $200,000 however the greatest saving are sometimes the larger houses that the owners can't afford anymore and they are taking a big cut on the overall price. Also there is a $8000 tax deduction for new home buyer which is incentive enough for going to purchase a new house if you were planning to do so soon. The deduction is similar to the one previously offered however this deduction does not have to be paid back while the other does over a 15 year period of time. With the housing market on a rise hopefully the economy will receive a domino effect and allow the spending to contribute to other markets such as restaurants, shopping, etc which will pull the economy back up. Now is the time to buy with very low rates and lower prices on houses, it is truly a buyers market... but maybe not for long!


http://www.nytimes.com/2009/03/24/business/24econ.html?hp