Since August, home prices have shown large improvements giving hope that the Real Estate market is taking a turn for the better. During the month of August, prices of homes went up 1.2 percent from July. Could we be seeing Nationwide prices that are similar to that of 6 years ago? If so this could be great news for the market picking up.

Although most major cities in the U.S. are seeing the prices of homes improving, California has made some of the biggest improvements. This is great news, considering California seemed to be hit the hardest by the crash of the Real Estate market. Major California cities like, Los Angeles and San Francisco have seen the greatest improvements, Los Angeles improving by 1.6 percent and San Francisco by 2.8 percent. This gives the State a bit of relief from the current situation we were seeing.

It seems that the Obama Administration knew what they were doing when they implemented the first time homebuyer tax credit. Helping new homebuyers qualify for tax credits to help them with their down payments, seemed to benefit the potential homebuyers and the Real Estate market as a whole seemed to stimulate the market and bring prices back to a good place, compared to previous years. Many are concerned though, that once the credit expires, it may cause this momentum to decrease, causing us to see a repeat of passed years. I am pretty sure that is the last thing any of us want to see

You have to remember, that most people are still in the financial situations they were in over a year ago, and for them this is all irrelevant. Not everyone is able to take advantage of the tax credit, leaving them still in a bind, possibly even facing losing their home. The ideal thing would be to help everyone; distressed homeowners, unemployed individuals and anyone else who needs assistance, but realistically there just isn’t the means of doing that with all the foreclosures and people losing their homes and jobs and so forth.

In order to assure that we can keep the market at a steady level, the unemployment rate needs to decrease immensely. Without an income, one cannot even fathom the idea of owning a home. And these days jobs and income are very hard to come by. This still leaves people on edge, because the housing market is tied in with employment. I wonder what the Obama administration will come up with for that one. Another thing that could help keep the housing market at a good level , would be to decrease the amounts of foreclosures we have on the market. With so many foreclosures out there, many of the homes out there that aren’t being foreclosed are suffering because they have so many foreclosed homes bringing down their property value.

The improvement of home prices gives us some hope that the market is picking up. It gives us more hope that this can only mean good things for the economy and employment factors.

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