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Answers (19)
Best Answer
- klarek the realist
- Contributions:7051
Yes there will be a near-absence of buyers when the tax credit expires. Almost all of them bought in the past year. Sellers will be squirming. Don't fall for the NAR-bait of the stupid tax credit. I've seen prices in my neighborhood jump up over $30k since the credit started. What idiot would pay a $30k premium for the opportunity to steal $8k from taxpayers?
Wayne: "Could be but also likely to be less houses to look at..... if you are entitled to the tax credit & qualified to buy now, waiting would be a big mistake."
That is the stupidest thing I've ever heard. Could you be any more vague about WHY there would be less houses to look at? Spring and Summer have always seen the biggest inventory glut on the market. Foreclosures are still setting records, there will be no shortage of houses for sale, much as you couldn't explain such a lie like that. Last I heard, when demand diminishes, and supply either remains the same or increases, prices plummet. Supply and Demand.
But good old Wayne Lancaster wants to scare buyers into believing they're making a "mistake" if they don't buy now. Just like he probably did in 2006.
Wayne: "Could be but also likely to be less houses to look at..... if you are entitled to the tax credit & qualified to buy now, waiting would be a big mistake."
That is the stupidest thing I've ever heard. Could you be any more vague about WHY there would be less houses to look at? Spring and Summer have always seen the biggest inventory glut on the market. Foreclosures are still setting records, there will be no shortage of houses for sale, much as you couldn't explain such a lie like that. Last I heard, when demand diminishes, and supply either remains the same or increases, prices plummet. Supply and Demand.
But good old Wayne Lancaster wants to scare buyers into believing they're making a "mistake" if they don't buy now. Just like he probably did in 2006.
- real estate mike
- Contributions:2001
If you are waiting to time the market, then how bad is your market? What are the signs and indicators in your area? Is the property located well, is there new construction or remodeling going on, in other words is the trend in the homes positive or negative there locally? How will the new f.h.a. financing affect you, will the same property drop in value more than $8k after the incentive goes away? I don't think so, but who knows. How is your job situation and experience; if you were in need of a similar job could you obtain one? The fact that you're asking is wise; how do you feel about buying emotionally? If you're not ready then you're just not ready. best of luck.
- sunnyview
- Contributions:24056
Bookreader, you sound like someone who is making a considered decision and not rushing to buy just to get the credit. Unfortunately, not every buyer is like you. I think the credit is definitely a bonus for people who are buying anyway. I just think people need to be careful about buying just to get the credit. I hear a lot of that and it makes me nervous for those people.
- bookreader451
- Contributions:23
From a real person's perspective I am buying now because it is time. We have been looking for 4 years and finally found a house we like, in a neighborhood we like, at a price we like and it is in good condition.
The credit is a bonus. Had we found this house 4 years ago we probable would have bought it then too. Don't buy for the credit, buy because you can afford it and you love the house.
The credit is a bonus. Had we found this house 4 years ago we probable would have bought it then too. Don't buy for the credit, buy because you can afford it and you love the house.
- sunnyview
- Contributions:24056
Oh lordy Miss Linda. Not a Yun link so close to the weekend. It almost blinded me. Anyone who is interested in what Mr. Yun has to say might want to check out the Lawrence Yun Watch. Happy Friday to all!
- Linda Strasberg, "L STRASBERG"
- Contributions:2259
- Alan Donald
- Contributions:130
I guess it depends on your personal needs and your local real estate market. Maybe ask yourself some of these questions:
Do you NEED to buy a home? What are the "other" circumstances in your life that would encourage you to own?
Can you afford any increase in monthly outlay by owning vs. renting (if you are renting now)
Is there some date that is important as a motivator for your purchase?
Are you mainly looking for a deal, considering your purchase more from an investment perspective?
How long do you plan to stay in this home?
In our particular market (Charleston, SC) there has been both pent-up demand from first time home buyers (November, 2009 was the perfect example - record sales for a normally slow month), but supply also increased - new home builders started offering product at very aggressive entry-level prices.
We thought that demand would stop after November 30th but we've had reasonably solid buyer activity in the lower price range for January and February. Will this go away once the Tax Credit expires? Who knows?
I imagine for 2-3 months following the June 30 deadline we'll see decreased buyer activity in this segment, but on the other hand all the good listings will be gone, and only the "dogs" will be left (and yes, you may get great bargains on those in July, but do you really want to buy any of those homes that no one else would, even with the tax credit?)
From a macro perspective, home affordability (i.e. the relationship between average house payments and household income is at a very favorable ratio for buyers. My crystal ball tells me that this affordability index will not last for a long time - something has to change - most probably interest rates.
If you plan to stay in the home for 5 or more years I would venture to say that it won't really matter WHEN you buy, as long as you buy WHAT you want and what you need as an individual/family. The $8K tax credit will not make a huge difference in the grand scheme of things...
I hope you find the perfect home at a ridiculously low price - best of luck!
Alan Donald
BuyHomesInCharleston.com
Keller Williams Realty
Charleston-Mt. Pleasant, SC
Do you NEED to buy a home? What are the "other" circumstances in your life that would encourage you to own?
Can you afford any increase in monthly outlay by owning vs. renting (if you are renting now)
Is there some date that is important as a motivator for your purchase?
Are you mainly looking for a deal, considering your purchase more from an investment perspective?
How long do you plan to stay in this home?
In our particular market (Charleston, SC) there has been both pent-up demand from first time home buyers (November, 2009 was the perfect example - record sales for a normally slow month), but supply also increased - new home builders started offering product at very aggressive entry-level prices.
We thought that demand would stop after November 30th but we've had reasonably solid buyer activity in the lower price range for January and February. Will this go away once the Tax Credit expires? Who knows?
I imagine for 2-3 months following the June 30 deadline we'll see decreased buyer activity in this segment, but on the other hand all the good listings will be gone, and only the "dogs" will be left (and yes, you may get great bargains on those in July, but do you really want to buy any of those homes that no one else would, even with the tax credit?)
From a macro perspective, home affordability (i.e. the relationship between average house payments and household income is at a very favorable ratio for buyers. My crystal ball tells me that this affordability index will not last for a long time - something has to change - most probably interest rates.
If you plan to stay in the home for 5 or more years I would venture to say that it won't really matter WHEN you buy, as long as you buy WHAT you want and what you need as an individual/family. The $8K tax credit will not make a huge difference in the grand scheme of things...
I hope you find the perfect home at a ridiculously low price - best of luck!
Alan Donald
BuyHomesInCharleston.com
Keller Williams Realty
Charleston-Mt. Pleasant, SC
- klarek the realist
- Contributions:7051
Okay Wayne, tell us then how there will be less inventory when foreclosures are rising, the spring/summer season is approaching, and virtually every lower/middle tier potential first time buyer was saturated by the tax credit and displaced to 2009.
Go ahead and square that one up. I know you think it's good business to scare people into buying without any sort of rational reasoning (in other words, "trust me, I work in the industry"), but it's really insulting. People should be just as skeptical of you as they would a finance officer at Carmax trying to get people to buy right then, without any real reason.
That wasn't a personal attack, it is an expressed grievance with you folks making incorrect statements and not even bothering to qualify them.
Go ahead and square that one up. I know you think it's good business to scare people into buying without any sort of rational reasoning (in other words, "trust me, I work in the industry"), but it's really insulting. People should be just as skeptical of you as they would a finance officer at Carmax trying to get people to buy right then, without any real reason.
That wasn't a personal attack, it is an expressed grievance with you folks making incorrect statements and not even bothering to qualify them.
- wayne lancaster, "funds2"
- Contributions:1076
Klarek,
Save your personal attacks for someone that might value your opinion... this thread is not for the purpose of bashing others that gives their opinions. If you had bothered to look before you attacked you might have noticed I am a lender not a Realtor so wasn't "selling in 2006" though you probably weren't either. I was a Realtor from '63 -85' and a loan officer since, so I feel confident responding to questions on this thread.
I apologize if my comment about less inventory went over your head, but you are probably use to that.
- atomsite
- Contributions:1
Home prices are inversely proportional to the unemployment rate. If you don't have a job you won't buy a house. A high unemployment rate lowers demand.
Foreclosures are expected to be higher in 2010 than in 2009. That will increase supply.
Foreclosures are expected to be higher in 2010 than in 2009. That will increase supply.
- Chelsy
- Contributions:74
Tell the truth, I don't know. The bank control the inventory, and the interest rate rising soon, after Winner it might be more competition.. however if the bank release their "shadow" inventory, the price would be lower. Best time o buy is this November.
- SoCal BubbleBrain
- Contributions:5290
'My advice and opinion is to buy now. The interest rate is very low and you may qualify for the $8,000 tax credit. If you need a house, waiting around to see if home prices go up or down is a mistake. ''
Of course you would. You're a used home salesman. Buy now! Who cares if more foreclosures are on the horizon in your area meaning lower values! I just want to get paid!! PFFFT... YES Just like Gordon Gekko...I'm BACK.
Of course you would. You're a used home salesman. Buy now! Who cares if more foreclosures are on the horizon in your area meaning lower values! I just want to get paid!! PFFFT... YES Just like Gordon Gekko...I'm BACK.
My advice and opinion is to buy now. The interest rate is very low and you may qualify for the $8,000 tax credit. If you need a house, waiting around to see if home prices go up or down is a mistake.
- HomeSand.net, "White Picture"
- Contributions:4106
One tenth of the buyers, who buy the houses because of the tax credit, so 30% of lower prices range buyers, after the tax credit expires, the question is "there are many lower prices range left for you to select from?". That happened in Los Angeles, CA right now, there are no more lower prices range is listed.
- sunnyview
- Contributions:24056
I would guess that you would have less competition when the credit expires and that prices would also be lower after the summer selling season. Keep looking and see if you find something, but if you are not hell bent on claiming the credit, I think you will see more selection at better prices in the Fall.
- Jennifer Giraldi, "JennSellsFast"
- Contributions:12
Much depends on your needs and situation. Competition might fall off sligtly, but don't expect large savings after the tax credit comes to an end.
- wetdawgs
- Contributions:23369
In your shoes, I'd wait. I suspect housing prices will drop further especially once the tax credit disappears. So, is $8000 credit worth spending >$8000 more for a house? I don't think so. (Each to their own, of course)
- Michael Emery, "MikeEmery"
- Contributions:6900
Don't buy anything just because you are getting the tax credit. Many of the homes I am seeing in the first time homebuyers price range are overpriced messes. And if we are to believe the analysts, there is a 'shadow inventory' of foreclosed homes that is looming on the horizon which will spill a whole lotta homes on the market this year, further depressing prices. If this comes true, it will be interesting to see what the Congress and and Obama Administration will do about this looming problem.
- wayne lancaster, "funds2"
- Contributions:1076
Could be but also likely to be less houses to look at..... if you are entitled to the tax credit & qualified to buy now, waiting would be a big mistake.
Is it better to buy a house now, or wait until the 8000 dollar tax credit expires?
there is a lot of competition for houses in my price range in Denver
because of the 8000 dollar tax credit. My price range is under 150k.
Will there be less competition once the credit expires?
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