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US housing sector is passing now a crucial moment as home price hit record lows in December 2008 at the same time that buyer confidence was showing signs of collapse. According to report, the consumer confidence index has dropped to 25.0, the lowest since the index began in 1967. American housing statistics has shown declines of 18.5%, with the S&P/Case Shiller home price index showing the pace of decline is picking up. On other hand, S&P economists have recommended prices will most likely continue falling in the months ahead, extending a 13-month-old recession. So, home sellers are anxious what they should do in this circumstance.

Bay region home sales increased above a year ago for the fifth successive month in January as home buying remained sluggish in pricier coastal markets but grew up in many local areas, according to a report on this Thursday by MDA DataQuick.

MDA DataQuick said a total of 5,050 new and resale houses and condos closed escrow in the nine-county bay area last month. That was down 26.7 percent from 6,889 in December but up 40.8 percent from 3,586 in January 2008 and the median price fell to $300,000, approximately half of where prices stood a year ago. Last month’s sales were the third-lowest for a January since 1988, when DataQuick’s statistics start, and 20 percent lower the average for the month. January sales were from a low of 3,586 in 2008 to a high of 8,298 in 2005.

Now, in the mind of every person who is related with real estate business has one of the most common questions is, when will things get better in the housing market?

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Many homeowners currently as a minimum 60 days behind on mortgages guaranteed by Freddie Mac and Fannie Mae went up to 2.73% in November nearly about double the delinquency rate of 1.43% in January 2008. According to a monthly report on delinquencies as well as foreclosures from the Federal Housing Finance Agency more than 834,831 borrowers were at any rate 60 days behind on payments, compared to 431,310 at the beginning of last year.

The report says there were more than 43,627 foreclosure starts in November 2008, and the figure were almost double the number 10 months earlier. Property foreclosures are further driving down housing prices though low prices are spurring sales as well. On the other hand, this week the National Association of Realtors reported that pending sales of existing homes jumped 6.3% in December. They expect the rising will be continue in this year.

Housing and mortgage groups were oddly active from last week on Capitol Hill, approaching hard for an improved tax credit to encourage home purchases.

In synchronized lobbying attempts, homebuilders, realtors, bankers and mortgage companies focused on the Senate, where final details of a nine hundred billion dollar financial incentive package were being mallet out all week. Four trade groups send a joint letter to the Senate of finance committee, which is responsible for all tax-related tasks, clapping the committee’s choice to build the existing seven thousand five hundred dollar tax credit no repayable as the House Ways and Means Committee voted to do the previous week.

However the four trade groups joined to push for an improved tax credit, the committee doesn’t essentially agree on all aspects of the plan. For example, the National Association of Homebuilders continues to lobby Congress and the Obama administration for a ten percent credit up to twenty-two thousand dollars available to all 2009 purchasers.

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