Article by Matthew Maillet
October real estate statistics have shown that many Americans are taking advantage of the first time home buyer credit. The National Association of Realtors reported on December 1st “an unprecedented ninth consecutive month of increases in the number of signed contracts.” While a signed contract does not promise a done deal home purchase (because it is not officially a closed sale,) this number is a clear indicator that many Americans are utilizing government incentives to purchase homes.
The Census Bureau has also reported some encouraging figures for the future of the real estate market. In the month of October, there was a dramatic 3.9% surge in private residential construction spending. Many analysts agree that these numbers may in fact weaken in future months; however, it is clear that the depressed prices of many homes as well as government incentives have encouraged many Americans to purchase their first home.
Many real estate analysts predict that the housing market could return to normal market conditions by mid-2010. While this hopeful estimate suggests that Americans are actively purchasing new homes, it also relies on several other indicators (unemployment percentage, etc.) Lawrence Yun, the head economist of the National Association of Realtors, explained that these indicators suggest a “broad wealth stabilization for the vast number of middle-class families.”