We cite three good reasons to still hope for better.
Though most forecasts for the year pin on an even worse performance of the property sector, we decided to resist the inescapable pessimism that lingers in the economy. Here are some reasons not to feel too harsh about the next 365 days even if analysts remain skeptical and you couldn’t find a single trace of Lehman Brothers anywhere.
First time homeowners can avail of $7,500 in tax credits until June 30. The Housing and Economic Recovery Act of 2008 has made significant efforts in reducing the supply of houses in the market by offering incentives to new homeowners. Best of all, it’s repayable in 15 years that is if you can beat the obstacles to first time homeownership that we previously blogged about. The Federal Housing Administration also offers other provisions like better foreclosure relief, lower income housing tax credit and temporary tax relief for those who do not itemize their deductions.
Gasoline prices have lowered for the last five months. For the first time in five years, oil prices have subsided starting July as the financial crisis weathered businesses, severely damaging commercial and personal consumption. Before demand picks up by the later part of the year (as noticed for the past four weeks by the Energy Information Administration ), current low prices would still mean extra savings to keep that house out of foreclosure.
Forbes.com believes that areas with thriving industries in video gaming, cosmetics, waste management, discount shops, for-profit education, comfort food and fast food need not aggravate with the slowdown in the economy. Workers could be confident to keep their jobs for the next twelve months. In our opinion, those in the public works that stand to gain much from the planned public works program of president-elect Obama could repel the economic downturn the most. If recently retrenched workers can qualify and transfer to these industries, unemployment rates can be cut by half and foreclosure rates can be controlled.