There is a forecast in the housing market that the home’s value will keep falling to a further 14.5% by Nov 2010. This was started by the housing collapse which also dragged the stock market and the economy down. While America is depressed and their spirit is beaten down, it doesn’t look as if the Obama stimulus plan has a good chance in fixing this. As the stimulus was announced, the psychological tone of Wall Street hasn’t changed at all. If the government does not really do anything to lift this gloom, this economic recession may most likely become a psychological depression for Americans.

As the home’s value is highly dependant on regional economies, it is hard to predict how low the prices will go and when it is going to stop falling. Last year the price plunged 19.1%. If you are thinking of buying a home, make sure you check the futures contract for prices which is publicly available here. If the price keeps falling beyond 14% as the forecast, save yourself by not buying.  Forecasts like that help keep buyers off the market, waiting for lower prices.

Apparently the financial stimulus package announced in Washington does very little to reduce pessimism in property markets. Although first-time homebuyers will be eligible for a tax credit of $8,000, the tax credit will be spread out over several years. This may not have a huge effect on the housing market. But then agan, even if the tax break were immediate as opposed to being spread over several years, there is still the down-payment issue.

The steps that the government is taking to address the current economic meltdown may be necessary but not enough to stablize the economy. This is because they are not directly addressed to the two most considerable sources of stress. The first one is the issue of solvency in the banking sector, and the second is housing, and they’re both related.

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