If you are planning to buy a home that you will occupy for a long time, now is the time to buy, according to Moody’s Economy researcher Celia Chen. Individuals who lost properties to tax foreclosures could begin recovering by looking for bargains among thousands of low-priced homes across the country.
Celia Chen, one of the authors of the Moody’s housing report for 2009, said the continued drop in prices, the reduction of mortgage rates and the availability of tax credits are factors that support persons buying homes now. If you are recovering from the loss of assets to tax foreclosures, then you could take advantage now of bargains that can be found in communities being rehabilitated.
The Moody’s report said home prices have decreased in 381 metropolitan areas in the U.S. by an average of 25 percent and are expected to fall further by another eleven percent before normalizing. The glut of lender foreclosed properties, compounded by tax foreclosures, has been pulling down home prices further.
Chen and her co-authors believe that house prices will reach their lowest level at the end of 2009, losing about 36 percent in value from 2006 home price levels. She said her team expects the housing correction to happen at the end of the year. When the housing market has stabilized, tax foreclosures would not be as toxic as lender foreclosures in affecting the overall housing sector. President Obama’s foreclosure mitigation program, the stimulus package and efforts by the Federal Reserve and the Treasury to maintain mortgage rates at their low levels are all factors pointing to the end of home price declines.
President Obama’s $789 billion stimulus program is a multi-pronged plan that would help various sectors to hasten the recovery of the country’s economy. The program has assistance schemes for troubled homeowners, for mortgage lenders that lack capital, for financial and automobile corporations that need additional capital infusion, for states that need additional funds for job creation projects and for communities and entities that need money to rehabilitate neighborhoods. In some of these schemes, persons who lost homes to tax foreclosures can find some provisions that could help them.
The National Association of Realtors has predicted the tax credit scheme will encourage about 200,000 more Americans to buy homes. This additional number will help energize the housing market and will give hope to individuals who lost some assets to tax foreclosures.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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