West Covina, CA- According to the C.A.R. “2009 First-time Home Buyers Tax Credit Survey”, four out of ten (39 percent) first-time home buyers said they would not have purchased a home if the federal tax credit for first-time home buyers was not offered. I know most media reporters say this as a BAD thing, and a sign that the buyers will go back into hiding after they disappear. However, 60% of the first time home buyers are still planning to purchase a home EVEN IF they don't get the First-Time Home Buyers Tax Credit.
Since most homes listed in West Covina under $400,000 are receiving multiple bids, and ALL homes listed under $251,000 are in bidding wars; I feel it is safe to presume that we will not really feel the full effect of a 40% reduction in competition. For fun though, we will suppose that we didn't have multiple offers, and that the 40% reduction in demand will actually have a direct correlation into the West Covina Housing Market Sales(highly unlikely). So our rate of sales would drop by 40% from 57units/month to 34units/month which would raise the West Covina Residential inventory from just over 2 months on-hand inventory to 3.4 months on-hand inventory. This means West Covina would STILL be in a seller's market (due to inventory being low, resulting in competing bids).
So even if the slow down has a direct translation into sales, which I believe to be highly unlikely as we have so many competing offers as it is, the West Covina Housing Market would still be in a Seller's Market. If you're looking to transition from your current home, either to upgrade or down-size, this could prove to be a great time to make the transition. Call us for a free no obligation consultation on how this process could work for you.
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