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I thought this was a buyer's market!

By
Real Estate Agent with Exit Advantage Realty

I've received this comment a couple times from buyers that I've been showing homes too.  Unfortunately, in our market, with the $8,000 tax credit on the verge of going the way of the dinosaur (barring an extension in the next couple weeks), there's a flood of buyers that are trying to purchase and settle before the credit expires.  The clients that I'm working with find that they are constantly going up against multiple offers... especially in the lower priced market which is where most of the first time home buyers are looking. 

I wonder though if its not so bad for these clients if the tax credit does expire.  The credit has artificially increased demand which has many of these properties selling for above list price.  Once the credit expires, I would think that the demand will go down bringing prices down along with it... effectively offsetting the loss of the tax credit.  Who knows... the buyers that miss the $8,000 tax credit might actually come out ahead! =)

Comments(3)

John Rakoci
Eagle Realty - North Myrtle Beach, SC
North Myrtle Beach Coastal Carolinas

Let's pray the $8K dies as it surely should. If there is to be a program it should be for ALL new loans- not refis- and not simply pander to obama's voter base. At least allow some that are going to be paying for the program benefit. obama is on track to put the US in worse financial condition than most 3rd world countries. Why should we, our children, and grandchildren pay for the votes he hopes to gather.

Oct 05, 2009 03:35 PM
Kathleen Frawley
Keller Williams 916 730-4404 Elk Grove, Wilton, Folsom, Sacramento - Wilton, CA
South County Sacramento, 916 730 4404

Here in Sacramento County, it is a buyers market in quite a few places because of super low inventory, so I don't think that when the tax credit goes away it will make too much difference here. (It WILL however make houses cost $8,000.00 more for 1st time home buyers.....Why are they waiting?)

 

Good observation

Oct 05, 2009 03:36 PM
Gina Tufano
Ask Gina & Company with Pearson Smith Realty - Sterling, VA
Ask Gina & Company, Northern Virginia Real Estate

I have experienced the same thing with my clients. Demand seems to be high in the under $400,000 here and most houses are priced competitively and in turn receive multiple offers. Also, houses are selling at a faster rate than they were a few months ago, and with less houses coming on the market, that means the housing supply of active listings is shrinking.

Oct 05, 2009 03:39 PM