2009 Housing Market Outlook
With 2008 coming to a close, one of the worst years in recent history for the real estate market, there is opportunity and hope for 2009. The government has stepped in and put regulation on the mortgage industry and are offering mortgage incentives and assistance to help stimulate the housing market.
There are still concerns with more record high foreclosures for this year and with the abundance of inventory on the market it is going to take some time before the excess home inventory is brought down to its average of 4 to 6 week time frame which is evident in a healthy market.
Both government and banks are taking steps to boost home sales, nationwide. Late last year, the NAR put out an estimate stating that if the government were to pay down mortgage rates to 4.5% it would substantially increase home sales. Banks have already started offering 30-year fixed rates for about 4.75%. The new year has started with mortgage rates being near a 50 year low for conventional fixed rate loans.
First time homebuyers may also be eligible for a $7,500 tax credit as part of the government’s Housing and Recovery Act, an emergency stimulus package that is directed toward the real estate market.
Even with a low interest rate and government incentives Americans are still skeptical of mortgage lenders in the wake of the subprime disaster. Banks such as Countrywide and Washington Mutual have come under fire for predatory lending practices and other violations.
So what do Americans have to look forward to in 2009 concerning the real estate market? There are several things working toward providing a boost to the market. It will most likely be a buyer’s market for several months with an abundance of inventory. Prices should be very reasonable and combine that with government incentives and low interest rates investing in a home in 2009 may be a wise decision.
2009 is an excellent time to invest in a new home, particularly in Idaho, where the real estate market fared slightly better through the storm than in the rest of the country over these past few years. We are poised to really turn things around this year.
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