There's a great article in the Investors Business Daily today "Weaker Home Sales Strengthen Case To Extend Tax Credit" In it, they report "another obstacle to a housing recovery; a huge shadow inventory of up to 7 million homes that have been --- or will go --- through foreclosure but have yet to hit the market". Finally someone gets it and they're finally reporting it!
It's my opinion that our economy will not rebound until this real estate market recovers (at least hits bottom). I don't expect appreciation across the board for some time (3-5 years?). Some pockets across the country will see some appreciation but as a whole we're years away. Is this doom and gloom thinking.... No, I see this as an opportunity for all those people that were priced out of the market during the boom. Residential real estate needs to get back to basics.... homes are to live in! Raise your children in! I'm not a fan of bailouts or government involvement but if we're going to use tax dollars for the economy I'd rather see it go back to tax payers that will help the economy recover rather than build some airport so a senator can have a shorter commute to work!
So do the extend the credit, based on the economy, real estate market, I bet they do... how about you?