A dramatic change in the market for spring 2009?

The extremely low interest rates combined with home prices which have also fallen dramatically were enough to set the stage for a very busy spring selling season this year. Add to these two factors the new stimulus bill currently making its way through the legislature which currently contains a proposed home buyer tax credit of $15,000.

Low interest rates, low home prices, and a large tax credit I believe will generate the busiest selling season in years. I would not be surprised if the federal reserve finds itself trying to douse, once again, an overheated housing market by raising rates this summer.

My own sense of the market in Wisconsin is that there is significant pent-up demand from potential buyers who have become fearful of both the economy and the housing market. I believe that confidence will begin to build this spring and a huge wave of buyers will pour into the market and wipe away the current inventory of unsold homes.

There is anecdotal eveidence of this starting to happen already by the increase in traffic to the most popular website to view MLS listings, -realtor.com.

Just look at the far right side of the following chart to see the pop in visitors: