real estate recovery is slow, but data indicates positive signs

 

Although housing is still slow and home prices are still low in Southern Indiana and the US. there are positive signs that indicate a slow recovery is in process.

Home supply is the lowest it has been in a long time.  There are 10% less homes on the market from last year and the lowest since March 2006. 

Affordability stands at 14.1% - well below the historical average of 25%. 

Interest Rates are still hovering around 5% for 30 year loans and even less for 15 and 20 year loans.

Foreclosures - For the first time in almost 3 years, the number of homeowners falling behind on  their loans is declining. 

Tax incentives
 

The tax incentives have not resulted in the increase of move-up home buyers as the government was hoping for when it extended the tax credit to homeowners moving up after living in their home for 5 years.

Both the move up ($6500) tax credit and the first time homebuyers ($8000) tax credit is set to expire the end of April.  Homebuyers must have an accepted offer by 4/30/10 and close by 6/30/10

There is no indication that either tax credit will be extended, so buyers wanting to get in on the credit should get busy.