Factors That Will Affect The Housing Market in 2009

After a brutal 2008 real estate market, I started analyzing what can be in store for 2009.

The Good News:

• Mortgage rates are at history lows and about a full percentage point lower than they were in most of 2008.
• Since receiving TARP money, banks are more eager to lend, although not as much as the past.
• Congress has begun investigating new ways to stabilize the housing market. One way they are considering is to provide homebuyers with nice tax incentives
• Sellers are more realistic in pricing their homes now that reality has set in. Great bargins are to be had!
• Pending home sales in December were up 6.3%.

The Bad News:

• The stock market is down 35% from a year ago.
• The unemployment rate rocketed to a more than 16-year high of 7.6 percent from 7.2 percent in December. Some top economist are predicting a 9.75% by the end of this year.
• The credit markets continue to be unstable. The Government continues to search for ways in stabilizing this very important sector.
• Retail Sales figure so far in 2009 is the worst in 28 years. This effects all layers of the economy.

We all hope for a recovery in the near future. This might be a good time for you to investigate all your real estate options. Please contact me at 630.839.9363 for additional real estate information.