We have heard quite a lot about the how the Federal Tax Credit has affected the housing market. It looks as though we may have to hear more about it over at least the next year due to the long term effects it has had on the housing market. We need to see the numbers without the Tax Credit lingering over us. The program did give the market a spike in the home buying sector, but after it expired the floor fell out. Now we need to let it settle before we can really gauge what the market is doing.
There are a lot of factors to consider when watching the market stabilize. The foreclosures are going to effect surrounding homes and neighborhood prices, which could affect prices for a while yet.