I received an interesting article from a local lender here.............Jason Jenkins with MetLife about the home buyers credit.
This article is very interesting...........John Burns, president of John Burns Real Estate Consulting (JBREC), suggest that we may not be on stable ground this summer and therefore will extend the credit.
I have very mixed feelings about the subject..............I do feel it gave us a boost and changed the way people think; to a more positive out look. I am not all that sure we need to keep extending the credit as I feel this just may be a band aid and not a long term fix.
His comment"A lot of people are not buying homes right now because they're worried about their jobs," Burns said in an interview with HousingWire. "If the economy's not on stable ground in May or June, I wouldn't be surprised to see it extended again." Makes me think that we need to create more jobs and job security. Until this is done that the credit is not going to help as if people do not have jobs - it will not matter if there is a credit and they will not be able to buy.
Now new construction sales would help, as that does create jobs.............but as long as we have a large inventory of REO's and short sales, why would you build? In fact according to this snip it : "With new homes, the homebuilders ran out of everything they could close by the end of November," Burns said. "There were people that wanted to buy in these communities that didn't because they couldn't close in time." The credit could have hurt new construction sales.
I realize I probably do not have the most popular opinion in the industry, but more concerned for the long term big picture. I also realize once this credit goes away, that I fear I will have some down time in sales. However have prepared for this in my business plan..........
I am very torn with what I think should happen - just wish we knew so I can stop changing my business plan!
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