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Answers (16)
- Dan, "the_country_hick"
- Contributions:4698
Not only is it true it was foreseeable.
We will also see house prices drop more when interest rates inevitably rise. You could look at the blogs shown below. They were all written long before the tax credit was over.
We will also see house prices drop more when interest rates inevitably rise. You could look at the blogs shown below. They were all written long before the tax credit was over.
"What will (or could) happen when the $8,000 buyers credit expires?"
"10 valid reasons to wait to buy a house."
"Do low interest rates really make it a good time to buy a house?"
"Foreclosures. Things you need to know before buying any property."
Foreclosures are coming. 2012 will be the end of the rush. Givernment interference (HAFA, HAMP etc.) could slow that down. Add in high unemployment, tight lending standards, and the shadow inventory and it could be years to clean out the excess inventory for house prices to stabilize. Not just go up but to not fall even more.
- NTETS, "Mr Caveat"
- Contributions:6436
1) prices have dropped in many areas by over 9,000 in the month the question was asked
2) low interest rates was and continues reguardless of the consumer bribe
2) low interest rates was and continues reguardless of the consumer bribe
- Salvador Lopez, "SalvadorLopez"
- Contributions:30
No tax credit VS Lower interest rate, your choice............It is just matter of numbers, I will go for Lower interest rate.Market is slower but buyers traffic it is steady in this Area,prices still up,up,up. We will see the change by the end of summer......
- Marsha Bodine, "STERLING REALTOR"
- Contributions:26
Absolutely! Prices of homes have come down substantially and the lower interest rates are keeping the buyers out looking and buying!! The lower the interest rate the more home you can buy...get out there! Call me if you are looking in the Central MA area. [contact info removed by moderator]
- Charlottesville Real Estate, "Charles McDonald"
- Contributions:230
Each area will be unique. In our area as an example, we have not seen this to be true
- NTETS, "Mr Caveat"
- Contributions:6436
and yet, even those are trending down...
- Matthew Goulden, "MatthewGoulden.com"
- Contributions:5
This is going to be true for many markets, as stated by several people it is Supply V Demand. Demand has slowed in new construction as well as in resale.
The biggest saving if you have waited is the current interest rates which have continues to drop for well qualified buyers, this will save you way more than an $8000 tax credit over the time of your loan.
Matthew
The biggest saving if you have waited is the current interest rates which have continues to drop for well qualified buyers, this will save you way more than an $8000 tax credit over the time of your loan.
Matthew
- NTETS, "Mr Caveat"
- Contributions:6436
of course people did it... most of the welfare class in america would sell their own mother for an 8000 dollar check. buy a home for almost no money down? not even a choice.
just think how well it would have worked if the credit were offered in 2005/2006? the recession might not have happened for another year!
just think how well it would have worked if the credit were offered in 2005/2006? the recession might not have happened for another year!
- Honestly Realty
- Contributions:31
Home buyers were duped in to buying homes by the deadline?
Ask yourself, would you rush out and buy a $20,000. car because the dealer had a $800. discount this month. That is the same as a buyer rushing out to buy a $200,000. home for a $8,000. tax credit. Silly but everyone did it. Even less of a reason on higher price range homes.
- Dan Pape, "dpape"
- Contributions:269
It seems this may be the case. Since the expiration of the tax credit the market has definitely slowed. The current listing inventory should soon lose patience and begin to lower their asking prices. The lowest interest rates in history may persuade some buyers to jump off the fence, but I still think supplies will far outpace demand for some time.
We are not out of the woods yet...
- sunnyview
- Contributions:25139
It sure does not look from the charts like Maryland property has remained stable here. Unfortunately, tax benefits do not come close to covering the drops in the market over the last few years in most places. Buyers should make sure that the property that they are buying pencils out without the tax benefits included and is more in line with PITI being equal to rent. Otherwise, they may want to reconsider buying.
- June Piper-Brandon, "junepiperbrandon"
- Contributions:248
It really depends on the area where you are. Not all markets have continued to drop and not all markets dropped in line with the amount of the tax credit. However, over all you have an accurate observation. Here in Maryland property values are remaining fairly stable. Keep in mind though buyers will continue to receive annual tax credits for interest paid and taxes associated with home ownership. These benefits are rarely stressed to new buyers.
- NTETS, "Mr Caveat"
- Contributions:6436
probably two or three fold since people put so much more value on cash today than they should. pay 30,000 to get 8,000... kind of ridiculous that people actually fall for it.
- Cathy Grelle, 209 329-9090, "CATHYg11"
- Contributions:17
YES it's true, Real Estate Marketing facts, yes, the latest reports revealed, including the fact that a nice DROP in interest rates is also a current trend.
- Simon Mills, "Mills Realty"
- Contributions:1858
I think your observation is accurate. The tax credit caused a great demand which helped keep maintain prices. Now demand is down and supply is up pricing is effected. Basic supply and demand!
Simon Mills
Mills Realty
Simon Mills
Mills Realty
IS IT TRUE, BUYERS WHO MISSED THE TAX CREDIT TIMELINE MAY GAIN IN LOWER PURCHASE PRICES?
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- 5.0/5.0
- (1 review)
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