There was hope for the future in April as it proved to have the largest monthly jump in close to eight years in regards to the number of U.S. homebuyers who agreed to purchase a previously occupied home. Unfortunately, there are plenty of danger signs that are still relevant to the U.S. housing market.
The real estate market continues to look for any glimpse of light for the future, but constant layoffs have increased foreclosures to an ungodly amount. Top this off with rising mortgage rates and things do not look any better than when the stock market collapsed last years. 
The most notable reason for the drastic increase in the number of U.S. homebuyers by 6.7 percent is credited to the $8,000 tax credit for first-time homebuyers. This was included in the economic stimulus bill that Obama signed in February. In order to claim this credit, any purchases do need to be made by November 30 which will likely increase activity in the market.
Thanks to this tax credit, there are hopes that the housing market will begin to increase in demand. However, there is much progress to be made to come anywhere close to normal. Because of the fact that mortgage rates continue to rise, many homes are less affordable for borrowers looking for deals. Rates have even increased over the past few weeks.
There is no denying the fact that the economy has been in one of the worst recessions in several decades. The U.S. housing market is certainly one of the many areas in the economy that is feeling the effects. Regardless of sales gradually increasing, analysts still believe prices will take much longer because of the wide array of properties that remain unsold.
In April, the national median sales price recorded the second-largest yearly price drop on record with more than a 15 percent dip. Until foreclosures begin to decline, there is no sign of prices beginning to rise. Unfortunately, many do not see foreclosures listings to decline for at least another year.
What many continue to ponder over is how effective Obama's $50 billion plan to prevent foreclosures is going to be. While there are no indications of success thus far, it is still too early to tell exactly what it will do to the market.
What is troubling for homeowners today is that they need to sell their properties for less than what they owe on their mortgages. This is a dilemma that many are dealing with across the U.S. which is just another problem in the house market today. While there are glimpses of hope for the future such as the home sales rise in April, there is a great deal of work still to be done.
There are quite a few bank foreclosures in the Palm Springs area and surrounding areas, these are homes that are currently owned by banks or lending institutions. These homes are priced to sell and there are some great buys right now! We can get you set up to receive Bank Foreclosures by email as soon as they hit the Palm Springs Area MLS. Here are some current bank foreclosure listings
