I read in a recent Mortgage Bankers article that the U.S. lost 1.2 million households during this recession. In a brief analysis, we find the following

1. The likelihoods that a young adult will form an independent household falls by up to 4 % during a recession

2. The home ownership rate dropped from approximately 69% to 67%.

3. The recession caused a dramatic increase in the rate of overcrowding.

4. Children whose parents have a higher income are more likely to remain at home.

5. Household formation will only pick up once the job market stabilizes.

When I think about this, I conclude that the most important item is the need for a fuller employment. March started improving this situation and as we move toward full employment the people crowded into these homes will rapidly start to begin new households. Then the housing crisis will be over. Hopefully sooner rather than later.

With the bargain prices we have now, plus low interest rates, the time is right.
In fact we just received notice that THDA has reduced their interest rate to 4.75% . This is now better then the FHA rate.

And there is only 23 more days to get under contract and get a Federal Tax Credit!