What's it really worth?
It's hard to figure out where this housing market stands in regards to home values, new homes being built in existing neighborhoods or sub-divisons have a significant lower price. Although the base plans have changed some, like less square footage and not as many up grades or additions are offered by the builders, thereby reducing the sales price. True, with the new requirements for loan qualifications, consumers are now opting for smaller homes with maybe up-grades reflected on the inside of the home.
Home owners with existing homes needing or wanting to sell can't un-load their homes without a significant reduction in price. This is not always and option when a home owner has a less than desirable rate or one of those exotic loans or just simply can't give up what he put in. With so many short sales, forclosures and plain just to come out even deals, how can anyone put a price on a house when BPO's are all over the map. This is not good news for a sellers.
Is it any wonder that consumers' are hesitant to buy even with the 1st time home owner incentive, the new home owner does not want a repeat experience off putting a lot of his cash into something that will show a decline in value as rapidly as this housing crisis is showing to be, maybe the $8000 credit is not enough to offset this dilema and to grow interest in buying homes.
Regardless if you are a buyer or seller, home owners are rewarded with the equity they grow in their home if they choose to live there a couple of years or a lifetime. To see such a severe decline in equity is a hard pill to swallow.