Friday, December 4, 2009

Improvements for potential homeowners

Posted by Pete Hill

Throughout the course of this recession, and the recovery of the recession, the housing market as a whole has still struggled. Although it may take a long time for the entire nation to return to its previous level, there is hope for some areas to respond quickly.

There has been a noticeable improvement in the price level of houses over the past six months. Rising home prices are a key ingredient to rebuilding the economy. Homeowners feel wealthier when their property appreciates in value and are more likely to spend money. Rising prices also help millions of homeowners who owe more to the bank than their homes are worth.

On the other side of the argument, the population who is interested in buying a house is in luck. Interest rates are at record lows. Housing prices in many parts of the country are still depressed. And you may be eligible for a generous tax break. President Obama signed legislation that provides a $6,500 tax credit for some current homeowners who buy another home. The law also extends the $8,000 tax credit for first-time home buyers.
Sales of new homes rose last month to the highest level in more than a year as strong activity in the U.S. South offset weakness in the rest of the country


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