Overall this has been a very good week.
Unemployment receded a little, a 27% spike in home purchase orders marking the highest surge in 47 years. GM even announced this week that they've paid back all the bailout money they received, with interest. The last one seemed to good to be true so I Googled it and this claim might be hiding behind some smoke and mirrors...Whether or not this is fact or fiction, the auto industry is also on the rebound.
I'm curious to see how the market holds up as we see the tax credit expire.It's pretty clear that the timing of this surge matched with a tax credit expiration along with rates that were on a slight increase is no coincidence.
I've heard from some agents on the front lines that there are some buyers that are not making the tax credit a priority in their decision to buy. This is nice to hear.
Some reports and surveys suggest that there will be a good amount of investors purchasing investment property, again more good news. Even better (from my biased point of view) is that a decent amount of these buyers will need to borrow some of the purchase money. In RI & MA, hopefully I get called up to arrange financing for some investors.
The fact that we are enjoying some nice weather and are well into the spring market will probably help keep some activity alive. I'd rather see the tax credit expire now instead of the middle of winter.
Jason E Potrzeba
Acadia Advisory Group, LLC
50 Grassy Plain Road
Riverside RI 02915
(401) 580-7612 Cell
(401) 633-6226 Fax