After shaky November numbers, analysts are not so sure. The number of houses placed under contract in November fell to a staggering 96 from the revised number of 114.3 from October. These are sure signs of another downturn in the US real estate market. This drop was much more severe than the 2% drop the National Associate of Realtors predicted. What happened?!
The extension of the government tax credit caused buyers who were initially racing to meet the November 30th deadline, take a step back and consider their options – why not? – they have until April 30th now! However, once the tax credit expires and the government starts phasing out their programs that keep mortgage rates low can this real estate market handle it. Many economists are doubtful.
The housing market crash helped pull our economy into the greatest recession in decades, but other areas are starting to recover…but the housing market does not seem to be recovering along side these institutions. Most economists feel the housing market will trudge through the murky waters even though recovery is happening all around.
Even though this drop caused some concern, it is not as bad as last year. The question is whether the US housing market will be able to handle this or will it need another round of Government funding to ward off a downward spiral?
Does this information stir up some questions about the Houston, Texas real estate market? If so, there is no better team than the
Puryear Team at RE/MAX Metro to give you the no nonsense answers you will need. Perhaps you want to stimulate our housing market and take advantage of the extended and expanded
Government Tax Credit. We have a list of
frequently asked questions on our website, plus other information about how this credit is different from last year’s tax credit. If you still have questions, feel free to contact us. We are here to help
buyers,
sellers, renters and leasers!
