The News We’ve Been Waiting For: The Real Estate Market is Stabilizing!

Well, it’s been a long time coming, but according to the National Association of Realtors, the real estate market is showing signs of stabilization, and looks to be headed for a sustainable recovery. This is good news for the economy and for home sellers.

Spurred by the First Time Home Buyer Tax Credit, and the subsequent extension of the credit, qualified buyers are continuing to bolster the saturated home market, and this is beginning to have a positive effect on home prices. People are getting their own home, and sellers are breathing easier—it’s a win-win.

The expected 2009 gain in home sales is 2% over sales in 2008, and the forecast for 2010 is an encouraging 13.6%. Home values are expected to rise as well. Along with these improvements, mortgage rates are expected to gain slightly, too, but overall, pricing and mortgage rates will still be incredibly attractive.

The upshot of this news is that while we’re still not completely out of the woods, and there are still economic issues that can and probably will cause problems, such as unemployment, the projected stabilization of the real estate market is an indication of positives to come, both within real estate and in the economy as a whole.