Has the $ 8,000 Tax Credit Worked?

              How has the 8,000 Tax Credit Worked?

As a Realtor in Charlotte, NC , the $ 8,000 tax credit  has worked to reduce some of the stagnant inventory that we had. A lot of my Realtor friends have said that the first time home buyers have been their life savers this fall. I have heard opposing views as to whether it has worked or not and have heard that it doesn't matter to some whether it is extended or not. Last Tuesday, I saw Matt Lauer of the Today Show interviewing Barbara Corcoran  about the sale of homes, signs of recovery , etc. A few of the points that she made are: the typical home is 1/3 cheaper than it was 4 years ago , if less expensive homes start tosell, the recovery has begun and that a lot of people who were sitting on the fence are tired of waiting and have decided to buy.

She said that the existing home sales are up 7 % , average home price has increased and foreclosure rates are increasing as the unemployment numbers continue to rise.  The downside of things that she said are: for every 2 houses on the market, there is a 3rd person who hasn't yet listed their home, the ARM's are getting ready to readjust causing more foreclosures, mortgages in default are rising, and unemployment is nearing 10%.

As a Realtor in the Charlotte area, I tend to work primarily in South Charlotte and Union County, NC so I decided to look at some of the numbers myself. First, I looked at the total number of homes in our MLS system. These included those that are active, conditional and contingent on sales. The total number that I found was 20,507. This is consistent with the amount of inventory that we have had for some time.  I was curious as to Ms. Corcorans statement about less expensive homes sales signaling a sign of recovery. I decided to look at the numbers for Union County and also for South Charlotte up to $ 150,000 just for the month of October. Since we still have a few days left in October, the final numbers will be a little different.

I began thinking that maybe the deadline of November 30th had  made a huge difference from the September numbers. After looking at those, South Charlotte had 5 pending sales and 8 actual closings while Union County had 24 pendings with 66 going to closing. 

Looking to buy a new home or sell your present home, please check the website at http:www.reneeinfinger.com   or call Renee @ 704.609.4241.