While the Federal Tax Incentive was one of the things that motivated home purchases, the continuation of very low interest rates and reasonable prices may enable buyers to purchase a home that may have been priced out of their reach before now.
In addition to the low interest rates for mortgages, houses in many areas have recently become reasonably priced, having come down from the high point of the boom years. This is true around most of the nation, especially in key areas where prices had gone up significantly.
In many areas, newer homes, built just prior to or during the housing boom, are available. These homes tend to be much greater in energy efficiency, have open floor plans, multi-use areas, better safety features and materials that are easy to maintain.
One cannot assume that interest rates or the price of homes will stay at present levels. Interest rates for mortgages are extremely reactive to the condition of various markets, and even a small upward tick can make monthly payments too high to be affordable.
As the recovery from the recession continues and individual financial circumstances become stable, it is expected that the price of homes will start to trend upward by the early part of next year, if not sooner.
