When I look into my crystal ball to see what 2010 will bring in real estate, I quickly realize that all will change on May 1. Why May first? On May 1st all of the first time home buyers and existing home owners that are seeking a tax credit need to be under contract. Prior to that date, there will be a mass scramble to find a home that matches needs and wants. Some will find the home of their dreams. Others will find a good compromise and finally the rest just didn't find the right home.
What ever your thoughts about the real estate stimulus, it was effective. A lot of inventory is being purchased creating shortages in some price ranges. A lot of families received additional income from the tax credit ($8,000 or $6,500). The tax credit had another effect. For each home transaction, there are 7 to 12 local businesses, from the realtors, lender, home inspectors, appraisers, title escrow person, handyman, carpet cleaners, and beyond that received paychecks from the home purchase. It truly was effective.
What will happen the rest of the year after the tax credit is history? Well... prices will increase a little, interest rates will be higher, and there will be fewer homes on the market. Bottom line is... right now is a perfect time to buy a home. So why wait!
Rob Proctor - Broker, At Home Realtors Loveland Colorado
Serving Northern Colorado! http://www-at-home-realtors.com
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