It’s a flip of the coin. The question is, which side are you going to end up on? Today’s housing market is a double edged sword. People who are looking to buy homes or property during the time of economic downturn have to consider many factors when making their decision. Will property values continue to slide or will they rebound?
In Detroit, Michigan alone some foreclosed homes are selling for as little as it would cost to buy a used car, that could be purchased with a credit card. Detroit has suffered tremendously from the troubles surrounding the automaker industry and recent economic downturn.
The number of foreclosures has increased countrywide by 14%. In some bigger cities it is almost double that. This has had a profound effect on the housing market. Many wonder if it will ever be wise to sink money in real estate again, with property values at an all time low.
Has the housing market really hit bottom, or will the prices still plummet? According to Dr. Lawrence Yun, who is the chief economist for the National Association of Realtors, the housing market is at its lowest level in ten years. He believes that the market has hit bottom and is poised to make a come back.
President Barack Obama’s economic stimulus package has begun to turn the tide in the housing market. Property ownership has long been the crux of the American Dream and it is once again beginning to see the light at the end of the tunnel.
People who are looking to buy homes in the near future will be given State and Federal incentives that are designed to get the housing market back on its feet. Banks and lenders will be somewhat more stringent on who they loan money too, but in the long run these incentives will encourage people to move on with their lives and forget about the trials of the not so distant past.
Buying property right now could be a very wise investment. Prices for homes and property are lower than they have ever been. Interest rates are also low. People who are purchasing homes or property right now would be seeing the kind of benefits that an investor would have getting into a business on the ground floor. Prices are low now, but property values will begin to climb again as the worst of the housing crisis subsides.
Incentives and Tax Credits!
State tax credits will be handed out on a first come first serve basis. Meaning that the housing market should flourish very quickly. People will begin to see the benefits of buying right now as opposed to later. Deals that you see today, might not be there tomorrow. But, the overall goal is to once again stimulate the economy by stimulating the housing market.
When considering purchasing a home in this time of economic storm. It is important to look to the future and weigh the pro’s and con’s. Property values are low, but they have turned the tide and show signs of recovery. It may not happen quickly but people will once again be able to see how they can benefit from owning their own home or property. The American Dream will live again and those who are willing to go out on a limb at the present may see major financial gains in the future.
The housing market may have hit bottom, but it is once again on the rise. We can see the break of dawn as the economy begins to recover. Investing in real estate has always been profitable and it will be again.