In October, buyers raced to get contracts signed in time to take advantage of a tax credit for first time homebuyers that was set to expire.  This tax credit was extended into the spring and the result has ben that some prospective homebuyers are now backing off or taking their time to decide to buy.  The figures that came out in early January illustrated how heavily the housing market depends on government help.  The number of people preparing to buy a home fell sharply in November and was an unsettling signs that the housing market might be headed for a double-dip downturn over the winter. 

The National Association of Realtors said its seasonally adjusted index of sales contracts fell 16 percent from October to November.  Economists surveyed by Thomson Reuters had expected only a 2% drop.  It is felt in many corners that when the tax credit expires this spring and the government phases out programs  to keep mortgage rates low, the housing market will have to stand on its own.  Many economists doubt that it can. 

The last housing downturn helped drag the nation into the worst recession in decades.  The expected dip in home sales and prices this winter appears to pose less of a threat to the broader economy.  The economy responds in a big way to the housing industry.  The housing industry will be the biggest contributor to the economy improving and will lead the charge in my opinion. 

What does all this mean to those persons thinking about buying a home?    Prices are very low, interest rates are very low, selections are very good.  This is a great time to buy a home and invest in real estate, especially on Hilton Head Island! What are you waiting for????