For the first time in the past year and a half it looks like the real estate market might actually be taking a turn for the better. Even though home prices are continuing to fall in many areas, in other areas prices seem to be leveling out. This is great news for home owners, home buyers and the entire economy. And home buyers especially should be jumping on the opportunity to get a great house a steeply discounted price. But, there needs to be a continued stimulus from the government for this to turn around for good and not start sliding backwards.
Many people are just now getting comfortable with the idea that the economy is getting better and are now starting to consider buying a home for the first time or buying a bigger home for current owners. The government should keep the tax credit for first time home buyers in place for another year so that all of these home buyers will go out, find a house, and apply for a mortgage. This will get the market going again. If the carpet gets pulled out from under this tax credit program too soon, I believe that we will slide backwards again.
And, according to a survey by real estate Web site Zillow.com, nearly 18 percent of prospective first-time home buyers said extending the tax credit would be the primary factor in their decision to buy a home before the end of 2010.
This should be evidence enough that there is a willingness to take on risk and buy a house by many folks. And this is great news! We should continue to foster this kind of risk taking and make it easier and not harder to buy a home and get a mortgage. Things are tough enough out there right now with greatly tightened lending standards and banks just not willing to lend much at all. Let’s at least keep the mortgage tax credit for another year and I think we will we heading out of the woods.
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