There are only 123 days left until the deadline to qualify for the 8,000 tax credit. That means you have to be closed in 123 days. You do not have 123 days to get under contract. If you are looking at homes that are listed as short sales there is a gamble that you will make it to the closing table in time. The average short sale is 2-3 months until you get an answer on your offer. There have been some that have been coming in within 30 days but they are rare.
Do you think it will help fair market sellers over the next couple of months as buyers switch from looking at short sales to fair market properties so they can get their 8,000 tax credit?
Do you think if that happens and the short sale properties stay on the market longer it will drive those prices down even more?
Then if that happens do you think the fair market homes will appraise out?
I honestly believe that the next 2 months are going to be the best time to buy a home. Let me add a note to that last statement, I believe that if you are looking for a place that you will be calling your own anytime is a great time to buy. Homeownership has proven to be a great looooooooooooong term(key word long) investment in your lifestyle. Over almost any 10 yr period since the great depression housing has been in a positive position(diclaimer.. I spot checked several different time periods but did not do all 75 yrs, if anyone has done all 75 yrs and every single rolling 10 yr period has been a positive I would love to know about that. Thanks in advance to whoever does it.) The bottom line is you are going to live somewhere, why wouldn't you want to own your own home and build equity. I know some of you are saying ...yea but look at what is happening all over the place now... I say sure there are some tough times but the percentage of people that are loosing their houses is still low compared with the percentage of people that are not. Some of the people loosing their homes should not have been in the home they were in, they bought bigger than they should have with the hopes that it would continue to rise. Housing, just like the stock market, doesn't go straight up. There are ups and downs along the way. Also some of the people that are loosing their homes had already pulled out cash during refi's, so that is money they already got out of their house.
I haven't heard any rumblings pertaining to the government extending the tax credit. I am sure that if they were planning on extending it they will try to keep it under wraps until the current one expires. They wouldn't want to postpone whatever boost the current activity is creating.(my opinion)
I would love to hear your take on all of this. I hope you enjoyed.
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