Christmas in August? Well...not exactly. Beat the Christmas rush, BUY NOW, is the true spirit of the market in August. As buyers are quickly realizing that there are incredible SHIFTS taking place in the market, it is more clear than ever that it is time to GET OFF THE FENCE. The widely successful Cash For Clunkers program is coming to an end on Monday. It provided a great stimulus to the auto industry and now it is time for the government to allow that market to function on its own. The question in my mind is, how many people will be buying next month? Will the housing market face the same tough question in November?
If I am a 1st Time Home Buyer that will be using an FHA Mortgage, I realize that if I want to insure that I can take advantage of the $8000 Tax Credit Program, I need to be under contract no later than September 30 to allow enough time for the loan to be approved and to close by November 30,2009. Home shoppers should be aware that a short sale is not likely to be approved fast enough, so they are left with a traditional sale or a foreclosure listing to choose from. Foreclosure sales are seeing competing multiple offers, and many times sell for more than the listing pricing. There is a dwindling number of homes available that offer the ability to pass as FHA appraisal in the traditional sale category. I would heed the BUY NOW message above, and beat the Christmas Rush.
If I were a traditional seller in this market, I would become very aggressive in my pricing and marketing of my home. A well priced home, that is in good condition, and properly marketed, could sell very quickly to a first time home buyer. I would price my home slightly below market and not look back. Should interest rates rise, or the $8000 credit disappear, buyers will have less purchasing power. I would rather sell now than take the risk of an uncertain market ahead.
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