Senator Chris Dodd (D-CT) announced on CNN this morning that he is co-sponsoring a housing recovery bill that among other things will provide a $15,000 rebate to the purchasers of foreclosed properties. This will go a long way of motivating hesitant home buyers to get off the sidelines while helping spur demand for homes. As this begins to stabilize prices, it will help clear up some of the over-supply of foreclosed properties and will generally help reduce the over 9 month supply of homes for sale.
On the other hand, we are concerned that this will not immediately impact sellers of existing homes as their sellers will be competing with builders who are offering incentives to clear their inventories and foreclosure rebates (or credits). Nevertheless, this still should help by getting hesitant home buyers to get back into the market. This will change momentum into one more favorable for real estate professionals.
Thursday, April 3, 2008
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