Market Should Be "Near Normal" in the Spring

Market Should Be "Near Normal" in the Spring


Housing industry consultant John Burns says low mortgage rates and the home buyer tax credit, plus the availability of FHA loans – “the new subprime,” as he calls it – will combine to keep housing transaction levels at “near normal” through Spring 2010.

First-time homebuyers are about the half the market, he says, while the expansion of the housing tax credit will get senior buyers “off the fence” and buying retirement properties.

What would have happened if Congress hadn’t extended the tax credit? “I think we would see housing crater,” Burns said. Burns clients include home builders, lenders, and equity invrstors.

Source: the Wall Street Journal, Nick Timiraos (11/18/2009)