Real Estate Experts Fear a New Chill in Home Sales

Even though homes sales have increased for three straight months, the combination of several factors have real estate professionals concerned about a winter slowdown for home sales. The two biggest contributors to surging home sales over the last several months—artificially low interest rates and the federal tax credit for first-time homebuyers—will end. The New York Times reports that mortgage defaults and distress sales are on the rise in the middle and upper price ranges of homes, and millions of homeowners are so upside-down on their mortgages that they are essentially locked into their home for many years. “Plenty of pain yet to come,” said Joshua Shapiro, Chief United States Economist for MFR. He is forecasting an imminent resumption of price declines. Home sales this past summer gave hope that housing markets were somewhat stabilized. The federal tax credit program prompted many homebuyers to stop waiting for a better price and buy a home. However, consumers across the country seem very much aware of the financial difficulty that lies ahead, as indicated by October’s unexpected drop in the consumer confidence index. Right now, foreclosures are the only sector of the real estate market that has remained hot as investors and first-time homebuyers take advantage of these opportunities. Many experts forecast more foreclosures in the near future. Nevertheless, growing concerns about the nation’s housing market inspired lawmakers to extend the first-time homebuyers tax credit that has resulted in nearly 400,000 home sales. If there was no extension of the program, the real estate industry could have faced a very long and quiet 2009. Falling home prices have made Louisville homes for sale an uncommonly good investment. If you’re looking for Louisville real estate for a primary home or income property, call 502.744.9504 or visit the website of Louisville Properties today.

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James Powell

Jim Powell has over 20 years of experience buying and selling luxury real estate in Louisville, KY and Managing over hundreds or rental properties across the city.
Jim Powell (License #191501)

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louisvilleproperties

Louisville Properties is a full service Louisville Real Estate Company for buyers and sellers of real estate. We offer the following services
3418 Frankfort Ave #100 Louisville, KY 40207 Louisville, KY 40207
United States
Phone: 1-502-744-9504

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