With amazingly low interest rates coupled with homebuyer incentives and many homes still on the market, the sale of homes is expected to increase in the coming year. Increased sales will be helped by the governments newly expanded federal tax credit for homebuyers according to Housing Predictor.
The national deflation rate is predicted at around 8.7%. There are over 19 million homes vacant and in foreclosure in the US right now. Until this inventory is sold, housing prices will remain at the current levels. Remember though that all real estate is local and some areas will be happily surprised to see some appreciation. The areas that have been hit the hardest might see double digit deflation even though actual home sales may be increasing.
So, in spite of the signs of recovery, it will take years for the housing market to recover. In the meantime, take advantage of this unusual market!
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