Can recent events stimulate the housing market?

Let's take a quick look at some of the more recent events that affect the housing industry and foreclosure listings:

• President Obama signs a massive housing stimulus bill into law;  the  legislation allows up to $8,000 in a "non-repayable" tax credit for first time buyers; the definition of a first-time homebuyer is someone who hasn't owned or co-owned a house during the previous three years

• Part of the stimulus bill is a relief program to keep 3 to 4 million home owners out of foreclosure and reduce the number of foreclosure properties; also, to refinance 3 to 4 million mortgages where owners can't otherwise qualify for a new loan because of property value declines

• Home  interest rates fell again -- this time to an average of just 4.99% for 30 year fixed rates; the Mortgage Bankers Association reported total applications for new mortgages increased by 48%  last week; there many foreclosure listings within the financial grasp of potential homeowners

The opportunities are pretty tempting to buy a house when you consider that prices are lower than they've been in  an extremely long time, an $8,000 tax credit is available for first-time buyers, and interest rates are so low.  In addition, the government is stepping in to slow the number of foreclosure properties and foreclosure listings. If people in the United States are tempted by these incentives, the demand for housing may start to increase.  If the demand for housing starts to increase, that is one factor that could help to stabilize housing prices across the country and in the Phoenix area real estate market.

Comments

[Aurora Colorado houses for sale]

Thanks for this information,This topic helps me a lot when it comes to foreclosure issues.

-Audrey