Will the market stabilize some what since the Government sponsored first time home owners tax credit

I have been speaking to listing and buying agents and we all agree now that the First Time Homeowners Tax credit has come and gone were hoping not see so many offers on property that became overwhelming for sellers wither banks or short sale properties to sift throw all the offers.

Has this been the case with other Realtors?
  • June 24 2010 - Upland
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Answers (12)

 

The market has slowed a bit in Northern California. Rates are low but the activity is not enough to keep up with rising inventory levels. I see us hitting our previous lows again this winters. Like I have stated as long as the banks are controlling inventory this market will be volatile for a few years. Its a good time to save and invest.

Daniel Del Real, CRS
PMZ

 

  • August 27 2010
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I think each market will stablize differently as the recession hit each market different. In Texas there are still 1st time buyer programs and down- payment assistance offered by the City. As agents we should stay on top of the programs and offer them to buyers because the city usually only have so many funds.
  • August 23 2010
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No based on the status in the MLS the market has dropped 50% in pending since the expiration of the tax credit. However today interest rate is 4.5% which is causing buyers to get out there and buy again. So lets hope the interest rates stay low and start eating up the listing inventory. Eventually we will start to get stabilized
  • June 25 2010
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Profile picture for ABBAUSA
The regular market of supply and demand will level things out in time.

The Tax Credit has been nice for some.

Only the market can stablize the market.

The government greases the wheels of the economy, but the people still call the shots.

Good Luck!

James Callas - Realtor®
  • June 24 2010
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I helped several families find a home using the FT Tax credit parts 1 and 2 but did nothing with the $6500 "move up" buyers.  It cost the tax payers ( all of us) tons of money and we would have sold those homes anyway, just maybe not in such a compressed time frame. The fact that up to $8000k was coming back to the buyers probably helped  inflate prices paid during this period.

As far as "stabilization" the new normal won't be anything like most of us are hoping. The American home market has gone the same way of the auto industry, bigger is better and everyone has to keep up with the Jones' as long as we can make the monthly payment things are cool.  I believe we have to return to more "common sense, affordable" homes which cost less to buy, maintain and use less energy..

New construction is way down, most markets have tons of existing homes for sale many based on premimum prices paid in 2005-06, foreclosures are still expanding in most areas, and high unemployment is lingering.
 
Jobs determine the value of real estate, so I don't see any real potential for appreciation in prices for years.
  • June 24 2010
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The tax credit did a good job of temporarily boosing the market, but there is too much distressed and REO property out there that will continue to negatively affect prices.  Here in Western Wa, we've already seen a drop of 44% in pending sales from April to May.   We're fortunate that interest rates remain low which is motivating many buyers right now. 
Until the government finds a way to slow down the amount of foreclosures, we're looking at a few more years before things really turn around.  The lending institutions foreclosed on 2.9+ million homes last year and are expecting over 3 million this year.  That's a lot of inventory that they'll have to sell off.
  • June 24 2010
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Yes, but I would like to see the closing deadline be extended to September I have a SS that has been a bear to close because of the rush of FTHB's!

--
Tere Rice Realtor* CSSN
DRE#01079287
CERTIFIED SHORT SALE NEGOTIATOR (CSSN)
100% closer on Short Sales
Buyers And Sellers
  • June 24 2010
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Profile picture for sunnyview
I don't see it in my area. Sales numbers were up, but the market has gone a bit dead since the credit expired. I do not think that I will be able to tell where the market really is until next spring. The buyers credit pushed people to buy at prices that were higher than market value pre credit just to make the deadline for the credit.
  • June 24 2010
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I think it is doing better everywhere!
  • June 24 2010
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In Northeast OH, the market is stabilizing.
  • June 24 2010
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It's about the same everywhere! From what I hear!
  • June 24 2010
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Profile picture for Mr Caveat
which is more disgusting i wonder... realtors actually complaining about having to sift through offers because 6 grand just isn't worth their time for 1 transaction anymore, or the fact that you are still playing this game in light of the abysmal home numbers that came out today...

link

New-home sales fell in May from April to a seasonally adjusted annual sales pace of 300,000, the government said Wednesday. That was the slowest sales pace on records dating back to 1963.

 It also was the largest monthly drop on record. Sales have now sunk 78 percent from their peak in July 2005.

The median sales price in May was $200,900. That was down 9.6 percent from a year earlier and down 1 percent from April.
  • June 24 2010
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