With the return of more normal weather this month, March employment numbers, due out in early April, will likely be the first positive employment report in more than two years and provide additional proof that the U.S. economy is in the early stages of a recovery.

The Federal Reserve seems to agree with this assessment. In its press release for the March 16 Federal Open Market Committee (FOMC) meeting, the Fed said that “the labor market is stabilizing.”

At the same time, the unemployment rate held steady at 9.7% in February, down from its peak of 10.1% in October 2009.

Other indicators also show progress. Industrial production — often one of the first indicators to turn positive — has increased for eight months in a row. Capacity utilization — a measure of how fully the available industrial capacity is being used — stood at 72.7% in February, up from its recent low of 68.3% last June. And consumers are spending more, with retail sales rising for the past two months and in four of the past five months. On a year-over-year basis, sales are up 4.1%.

We need to see improvements in retail and employment as an indication that consumers are ready to take on more significant purchases such as homes.

Source: nbnnews.com

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Consumers can use the Web site to find information on both tax credits — including frequently asked questions and links to social media sites that provide updated information as it becomes available. It also includes a number of home-buying resources for consumers.

Industry professionals are encouraged to highlight the tax credit Web site when marketing to their potential home buyer market.

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Although home buyers need to sign sales contracts by the end of April to qualify for the $8,000 first-time and $6,500 repeat home buyer tax credits, qualified active military servicemen and women have an additional year to take advantage of these incentives.

Under a legislative provision targeting active members of the military, the Foreign Service and the intelligence communities, the tax credit was extended for one year beyond the current deadlines of April 30, 2010 for a binding sales contract and June 30, 2010 for settlement and closing.

The provision only applies to home buyers in the above mentioned groups who have served on official extended duty for 90 days or more outside the U.S. from Jan. 1, 2009 to April 30, 2010.

Also, service members who must sell their home because of official extended duty are excluded from a rule that requires buyers to repay the credit if they move out of their home within three years.

Builders — particularly in cities and towns with a large population of military personnel — should take advantage of the opportunity to market the tax credit extension to qualified military families that are looking to purchase a home.

Resources geared to helping builders spread the word about the benefits of both the tax credit and homeownership are available at www.nahb.org/taxcreditmaterials.

More information on the special provision for military service members can also be found at www.federalhousingtaxcredit.com.

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