More Government Support

Well just about every blog is covering the extension to a whole bunch of support for the housing market.

Couldn't quite work out why the senate voted(98-0)to extend unemployment benefits for states with rates of 8.5% or higher ONLY. Sad to say that does include Illinois.

Although not completely passed the House, the extension to the homebuyer tax credit of $8,000 to April 30 is a great reprieve. The idea to inlcude "move up" buyers and give them $6,500 is even better. Remember home owners must be in their house for at least 5 years. Other general stipulations are homes must cost less than $800,000 and its $125,000 a head on income limits.

Looking at the general housing data for many local neighborhood things look positive but in each example inventory, despite dropping, remains precariously high. One could not help but wonder what would happen to values when both the buying season and the tax credits ended.

With any luck the buying season will now be extended which is what we need. For if the market has any chance of recovery inventory levels have to come down much more.