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What’s Next in the Real Estate Market?

There is a lot to consider when selling your home or buying a new home. There appears to be some uncertainty about how economic trends will impact your decision making about timing your purchase or sale. There is some encouraging news, however.

Manufacturers are helping to lead the U.S. economic recovery, posting the seventh straight increase in production in January.

Home building posted a better-than-expected increase last month. Activity reached its highest point in six months.Good News for Massachusetts; The increase in housing construction last month was led by a 10 percent jump in activity in the Northeast.

In addition, mortgage rates are hovering around 5 percent, pushed down by a Federal Reserve program to buy mortgage-backed securities. And builders say they are also seeing a boost in the demand for homes coming from a government stimulus program. That program provides tax credits of up to $8,000 for first-time home buyers and up to $6,500 for current homeowners who decide to move.

The government stimulus program should continue to motivate buyers and sellers for a while. The purchase and sale agreement must be signed by April 30,2010 and close by June 30,2010.