Castle Law Office Blog | Missouri & Illinois Bankruptcy Legal Blog

Is The Housing Crisis Over?

With the first time homebuyer tax credit, a strong summer of home sales, and a growing number of new constructions, some signs point to a recovering housing market - but are we out of the woods?

Many point to the dropping rate of foreclosures across the country - the rate of foreclosures dropped by one percent from July 2009 to August 2009. However, the rate of foreclosures is still up 18% from this time last year.

Another consideration is the continuing weak economy. As long as unemployment numbers are high and as long as many are losing their health insurance coverage along with their jobs, families will continue to struggle to pay their mortgages or find themselves facing an unexpected financial or medical emergency. In addition, the new homebuyer tax credit may take extra inventory off of the market and act as a temporary solution, but it comes to an end in a matter of weeks. Unfortunately, we don't yet know what the near future holds - for those nearing foreclosure, for those with upside-down mortgages, or for new homebuyers.