Though the country has begun to pull out of its recession, the housing market still has a significant role to play in the tentative recovery efforts. It was the subprime collapse that precipitated the avalanche of unemployment and general economic slowdown, and with real estate transactions making up 15% of the economy, it is easy to see why economists are hesitant to claim that the end is in sight with various regional markets still struggling. Housing prices are still down 30% from their peak in 2006, and over the country, they may fall another 5-10% this year according to Moody's economy.com.
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With concerns about the state of the economy still floating around in the national news, it can be difficult to say just what all the hullabaloo has to do with the local housing market. There is good news and bad news.
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Homebuyers who plan to take advantage of the federal government's $8,000 tax credit extension had better act fast. In order to qualify, you and the realtor must sign the purchasing contract by April 30, and the actual closing must occur by the end of June. If you want to beat the rush, block out plenty of time (around filing for taxes, of course) so that you can make your final decision with time to spare.
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