Continued doubts in our economy shutter the housing market and weaken the outlook on a positive 2011. After dragging the US economy into a major recession, property markets across the country are now relying on an economic recovery to help cure the housing market.
Foreclosures will continue well into the 2011 year and perhaps for the next few years. The glut of unsold homes on the market needs job growth to put consumers back into the stores and to bring back consumer confidence. Talk about the mortgage tax deduction being eliminated could cause potential homeowners to not even consider buying a home. Of course the number one thing we all should be concerned with is the overall economy and if jobs do not rebound that could make for a very, very messy and long road to recovery in every sector.
As for housing it has been a rocky road, from foreclosure fraud as of late to the government’s Home Affordable modification program, coming up short in helping homeowners stay in their home. Now there is talk about the mortgage tax deduction being eliminated, which could stall out the recovery of the real estate market.
The first half of 2010 we saw some improvement due to the tax incentive to purchasing a new home, but after the credit expired, housing has once again slowed down. It will take almost a year for us to work through the current housing inventory. As mortgage rates slowly begin to rise as well, only spurs more talk about how long of a road we are looking at in terms of housing.
However, in the wind of all this negative talk about the housing recovery, there is talk about a spur of recovery due to low housing prices, overseas investors, and construction prices at levels we haven’t see in more than 40 years! This should help buyers to come out of the wood work to look at purchasing; the only downside to this is the lenders tight lending policies as of late.
Even though there has been a lot of buzz about the HAMP program and it falling short on the number of people it was projected to help, it is still a very viable option if you are behind on your mortgage. Don’t forget most lenders also have their own loan modification workout programs, so even if you do not qualify for HAMP, you can still make out in saving your home and reducing mortgage payments and interest rates by applying.
