Well one can’t say that the news has been very promising over last few years, when it comes to the US housing market. But, the current data is mixed. It must be said, however, that numbers at the best of times can be misleading.

The foreclosures aspect

The good news is that the number of foreclosures in January went down, compared to the earlier months. The drop in foreclosure was 10% from the drop in foreclosures noticed in December. Industry experts ask people not to regard this drop as a sign of recovery. Its good news, but a wait and watch policy will give a true picture of the months to come and also whether any recovery is actually on the cards. Experts estimate that over the next few months there will be a surge in foreclosures as a result of foreclosure alternatives not working. Some of the states that have been the hardest hit because of foreclosures are Georgia, Illinois, Nevada, California, Utah, Florida, Illinois, and Idaho.

Homes sales – Low again

As expected, there is very little good news to be had from the home sales sector. It showed a 7.2% drop compared to the month of December. According to reputed agencies, the sales of new homes hit an all time low in the month of January. New homes are still not on the radar for most people looking at purchasing a home. For them, short sales and foreclosed homes are a much better bet.

Interest rates – Some good news

The month of February had good news for potential buyers as the mortgage rate remained low throughout. But, by the end of March, the US Federal Reserve will stop its policy of buying securities that are backed by mortgage. Chances are that this will prop up the mortgage rates. But there have been indications that if the rates start to rise, the government will step in to bring down the rates. But again, one needs to wait and watch what happens.

Is it back on track?

Well, nobody is willing to answer this question yet. But, there is no doubt that things are better than before. The question is whether they will keep on improving or shift downwards again. When it comes to the housing market, it’s not just the law of demand and supply that is going to decide market improvement. There are many more factors at work, which makes it all the more difficult to predict a definite outcome.

Are you tracking the real estate market and wondering when would be the best time to invest in a property? Are you looking at the slightest signs of recovery in the housing market and wondering whether to put your foot forward?

Well, it may be true that prices of properties are low and they are no longer free-falling. Mortgage rates are also relatively low and you may be tempted to utilize the tax credit offered by the government in 2009 to help new buyers with their property purchase. Now that this tax credit has been extended to April 30 2010 and includes current homeowners as well, the deal may seem nothing but sweet.

Despite all this, purchasing a property right now may or may not be the smart thing to do. It is expected that prices of homes in some areas in the US may decrease further. If you already own a property, it may take you longer to sell it a good price due to the low prices. So, while it may still be safe to buy a property now, the market is still a difficult one.

If you currently own a home and signed a contract to be eligible for tax credit can expect a reduction on 10% of the purchase price of the property, with a ceiling of $6500. First time owners or buyers of a property can receive almost up to $8000 in reduction. However, if you haven’t already sourced for a house, you may be pressed for time in order to meet the April 30 deadline.

Real estate agents claim that buyers generally spend about 12 weeks looking for a home before deciding on one. Also, in order to qualify for the tax credit, your total household income should be below $2250000 if married and below $125000 for singles. Repeat buyers should have been in the house for at least 5 out of 8 years to qualify for the tax credit. So, if you are keen on tapping on this tax credit, act now.

Should you decide to wait to see how the market shapes up, you may face the risk of having to deal with a rise in mortgage rates. However, if housing prices are dropping where you live, you may end up with a lower price by waiting. Do a check online or with real estate agents to find out where the market is headed. If you find that mortgages are on the increase, then recovery is still a distant sight.

A seller when starts making queries and questions to real estate agents he gets excited to settle down at a sell price. For a home owner increased money can lead to a lot of other opportunities. It perhaps signifies that the seller can now afford to purchase a more expensive house and save also. However while doing this many times the worst mistake they make is to listen to the listing agent who suggest the highest sell price.

It does not really matter what you think is the real value of your home or what your agent thinks about the value. What matters most over here is the person offering to purchase your house and his opinions. Pricing the right quote involves a lot of comparison in similar properties, adjusting the differences, market conditions, stock. Based on all these facts one must come up with a fair value to sell. The perfect selling price of a home should be a price at which the buyer is ready to buy and the seller is wiling to receive. If the price tag is settled at a low rate to be in competition then the seller must get a lot of offers. Hence it is safer to settle it at a low rate than pricing it too high.

Many times the real estate agent can guide you wrong and list your house at a high price. This will fetch you no buyers. With time when your listing will expire you might lower down your rate and ultimately sell it at a price which is similar to the value of similar properties in your neighborhood. Hence, one must carefully choose a real estate agent who is educated and experienced enough to guide you through the entire process. Hence one must compare, think a lot and not make these home selling mistakes people usually do.