Weekly Roundup -
The Housing Price Bottom & Tax Credit Extension
As we near the final two months of the year, two major issues in housing seem to have remained constant from the beginning of the year, housing prices and the first time home buyer tax credit.
In regard to falling housing prices, Rochdale Securities banking analyst Richard Bove this past week stated on CNBC that, "I really believe that the industry has bottomed, that we're not going to see further crashes in home prices or in home sales."
He followed that up by stating that analysts are no longer happy with banks breaking earnings and revenue forecasts and are now looking at early stage delinquencies, which appear to be declining.
If that is the case then perhaps the worse portion of foreclosures has already started. We will monitor to see how much this rings true going forward.
Home Buyer Tax Credit
On other fronts, HUD Secretary Shaun Donovan spoke in front of the Senate Banking Committee with one of the key issues being discussed being a possible extension of the first-time home buyer tax credit, set to expire November 30th. Mr. Donovan said the government is weighing the costs and benefits very closely and will have an answer in the coming weeks, before the deadline, on an extension or not. Although this did not provide us an answer for now, it at least sets a time table for getting one. As always we will provide information as available.
For more information on home purchase loan or refinance programs for existing and potential home owners, please contact Bill Kamboukos and Carlos Felix of Strategic Mortgage at (480) 219-3682 or by emailing: info@strategicmtgaz.com or online at www.strategicmtgaz.com
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