State of the Housing Market

President Barack Obama spoke to the country last night to inform the American people about his vision for the future of this nation in his State of the Union address. The economy was the main focus of his speech as it affects every one of us. One major factor to economic recovery is the housing industry. So that begs the question, what is the current state of the housing market?

News of bottomed-out mortgage rates, record numbers of foreclosures and the continued uncertainty of the economy may make you nervous about purchasing or selling a home. You may be asking yourself, is now the time to act, or should I hold out for the economy to improve? There may not be an across-the-board answer to that question.

For homebuyers, the low mortgage rates are appealing and the median price of all existing homes on the market continues to drop. That means there are more homes available for less money. With mortgage rates slowly creeping up, some people are jumping off the fence now to take advantage of these benefits. The other side to that is sellers may not want to sell at this time.

For sellers, the economic meltdown saw home values crash. With mounting foreclosures, distressed sales and bank-owned properties flooding the market, the outlook may be bleak. Whether to hold on to your house and pray for the best, or give it up before falling into foreclosure is a tough decision. Check out our Facebook page at www.facebook.com/tabarealty for today’s tips on avoiding foreclosure and where to turn to for help.

However there is some good news on the horizon. Sales of existing homes jumped in December, marking the fifth month of gains in the past six months based on the latest industry report. The 12.3% gain was much higher than analysts had forecast. Although they believe foreclosed properties made up a chunk of those sales, it still offers a glimmer of hope.

Another sign of encouragement is American consumer confidence hit an eight-month high this month according to the Conference Board. This shows Americans are growing a little more optimistic about the job market and business conditions. While experts think it may take a few more years to get out of this housing market mess, at least consumers are feeling a little more hopeful about the future.

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