Three Factors Starting To Thaw Housing Market

Washington, DC, May 8, 2009--A triple whammy is thawing out the frozen housing market, according to the National Association of Home Builders.

The three elements are the current historically low interest rates, prices dropping to realistic levels and tax credit refund incentives.
 
“Today’s market offers an incredible opportunity with the unprecedented combination of a 40-year low in interest rates, prices returning to normal levels in many markets, and limited-time tax incentives,” said Joe Robson, chairman of the NAHB and a home builder from Tulsa, Okla.
 
The number of homes under contract increased in March, according to the National Association of Realtors’ Pending Home Sales Index, which increased 3.2 percent from February to March.
 
Optimism about the housing market is on the rise as well. An April 16 Gallup Poll found that 71 percent of Americans said that now is a “good time” to buy a house, an 18 point increase from one year ago and the highest level in four years.