DID THE "BOOM" TURN INTO A "BLIP"??? WHERE IS THE CRUNCH OF LAST MINUTE HOME SALES??

As many know, I'm a statistical "junkie".  I've often said "nothing in business has any meaning without a statistic". 

NUMBERS DON'T LIE.  That is a fact.  Of course statistics can be interpreted in 10 dirrerent ways by 10 different writers or readers. 

QUESTION:  How has the pending expiration of the federal income tax credit effected the real estate market???   

ANSWER:  WHO SAID IT HAS???  You'd think that the tax credit would have encouraged prospective home buyers to get off the fence and into the market.  Indeed, I've received many buyer calls who specifically want to "BUY PRIOR TO APRIL 30 and CLOSE PRIOR TO JUNE 30, 2010.

MY CURIOSITY COULD ONLY BE SATISFIED BY DIGGING INTO THE STATISTICS FOR PENDING SALES DUE TO CLOSE BY JUNE 30, 2010.

I looked at the SOLD report for Loudoun County this a.m. and found the numbers to be very interesting. 

SOLD in Loudoun County, Virginia

CLOSED March 1 through March 25, 2009 = = = 274 units.

CLOSED March 1 through March 25, 2010 = = = 306 units.

CLOSED April 1 through April 25, 2009 = = = 281 units.

CLOSED April 1 through April 25, 2010 = = = 263 units.

Where's the ECONOMIC BOOM  the tax credit was supposed to produce???  GRANTED, buyers have until June 30 to SETTLE their contract, I just can't find the flurry. 

LOOKING DEEPER in the MLS reports as of today, there are 17 properties UNDER CONTRACT, the projected CLOSE DATE are all in April, all with dates now past. 

HERE'S THE REAL NEWS . . . . .   Properties now listed as CONTRACT (Pending in some areas) and due to settle by June 30, 2010 = = = 426 units.

Considering the average units closing in March and April 2009 or 2010, adding an additional 426 SOLD units to the statistics is, IMO, significant. 

NOT ALL BUYERS ARE ELIGIBLE FOR THE TAX CREDIT.    Keep in mind that many of the buyers due to close prior to June 30, 2010 are not eligible for the tax credit.  They may not be First Time Home Buyers and, looking at the existing home owners, may not have owned their previous home for 5 years.  I have buyers due to close in mid June who owned their previous home for 4.5 years.  Bummer.  I also have a buyer who went to contract yesterday who will close in about 7 months.  Interestingly, the buyer who went to contract yesterday, believed that she would be eligible for the tax credit.  I'd advised her of the dates earlier, but . . . . .  buyers simply don't have the knowledge base to process this information accurately.  She's O.K.  She just wants a new home. 

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988.                      

                                           

             "Keep in mind, Mr. and Mrs. Buyer that we must close this contract by June 30, 2010"

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Visit Homefinders.com for information in the Maryland and Northern Virginia real estate market.

• Visit our main Loudoun County real estate web site.
• Real estate in Lovettsvillein Western Loudoun County.
• Real estate in Leesburg,Virginia, the County Seat for Loudoun County.
• New homes in Loudoun County, Virginia - Buyer's REBATE.
  New Homes in Lovettsville, Buyer's REBATE. 
• New Homes in Hamilton, Buyer's REBATE.
• New Homes in Leesburg, Buyer's REBATE.