Tuesday, October 27, 2009

Is the real estate market at the bottom? Might be a long winter

October 2009
The statistics indicate that we are at or close to the bottom of the poor real estate market. Existing home sales up 9% last month wow! NAR attributes this primarily to the first time homebuyer incentives. Not feeling it yet in the moving sector. I assume much of the activity for first time home buyers is reducing the inventory of short sales and must sell situations, but not really effecting those families who would normally hire a moving company for a long distance move.

Lawrence Yun, NAR chief economist, said favorable conditions matched with a tax credit are boosting home sales. “Much of the momentum is from people responding to the first-time buyer tax credit, which is freeing many sellers to make a trade and buy another home,” he said. “We are hopeful the tax credit will be extended and possibly expanded to more buyers, at least through the middle of next year, because the rising sales momentum needs to continue for a few additional quarters until we reach a point of a self-sustaining recovery.”

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