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Tax Credit Expiration: The Short Term Impact on Housing

After the homebuyer tax credit expired, the path that housing market has taken, it’s been a two way opposite direction.

One of the paths that have taken is recovery, sales and prices are rising. But on the other way, interest rates and repossessions have done it too, and there are more than a million foreclosures that are under the shadow.

Richard DeKaser, an independent housing market analyst said that he can see a “mini collapse, in the short run” but at the end of 2010 can turn into a positive end.

Chief economist for National Association of Realtors Lawrence Yun, says that “in the months immediately following the expiration of the tax credit, we expect immeasurably low sales”  but since the credit helped the housing market to stabilize when it was needed the most, they could recently see their first year-over-year rise.

So the prognosis that experts have arrived to, is that this negative short-term situation will be positive by the end of 2010.

By: Eunice Mejia, Editor – Mortgage Lending News, LLC         To read the full article:  Tax Credit, the short term situation..