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Cash for Clunkers : Home Edition

By Sidney Jimenez

Real Estate Agent with Keller Williams

August 25, 2009 01:39 AM

The "Cash for Clunkers" program has ended and for all it's bad press, it seems to have been a HUGE success. But now comes the sobering part for the car dealers, the hangover.

I spoke with a car dealer this weekend, my brother-in-law was thinking of cashing in his clunker, and I was told they sold 775 cars under this program for the month of August...and according to that salesman they have never sold that many cars in any month, ever. So I asked what's next? "Well, I supposed we won't sell any cars for a month or two since many people that wanted a car already bought one." he said with a sigh, "we'll need the rest. Eventually we'll go back to our 200 car-a-month sales, hopefully we can survive until then."

Well, folks...The Cash for Clunkers:Home Edition ($8,000 Tax Credit) is about to end this November. Will we hit the hangover stage? Do you think sales will trickle? Or, are you convinced we hit bottom and the good times are here to stay?

For the record, I vote for trickle

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Home Loan Search.Online

Home Loan Search Online - Newnan, GA

In real estate there will always be people that will need a home. I expect a trickle, but I've heard from several people that they have waited to see if the tax credit would rise.

Aug 25, 2009 01:58 AM

Sidney Jimenez

Keller Williams - Miramar, FL

CDPE, Short Sale Expert, 954-665-9449,

DARELL,

Yea, I heard about the possibility of it rising to $15,000, but what do you think the possibility of that would be? News reports and the perception seems to be that things are turning around. If the next couple of Case/Schiller reports come back positive, I think that will kill any further credits....for now!

Aug 25, 2009 02:09 AM

Cathy McAlister

Cathy Ashley McAlister, GRI CDPE - Broker / Sacramento - Sacramento, CA

Sacramento DRE#00648507

Sidney, I am thinking positiive on this one. I believe some sort of tax credit will continue, just not announced until the current one expires. Our economy is still too weak to move forward without it. Real estate has had some encouraging news articles of late I think the politicos would like to see that continue. What better way than to have the tax credit. At last count there were four possible bills.

Aug 25, 2009 02:24 AM

CATHY,

I thought the same way, and I still hope there would be some kind of extension or even enhancement of the current credit....but they canceled the Clunkers at it's highest success. That precedent doesn't bode well.

They seem to really take a lot of stock in the Case/Schiller index, which is due to come out soon. Let's see how that is received, I think it could be a deciding factor.

Read these posts in AR, there are many totally convinced we turned the corner and they're IN the business.

Aug 25, 2009 02:31 AM

They may be right, I just would not be surprised to see a return of the clunker program for cars (after the auto industry can get this first round absorbed)... and some continuation of the home buyer credit. As a way... to prime the pump.... so to speak. Case Shiller is a reflection of the US housing market and we are in a world rescession - Europe is only now dealing with the housing finance issues we faced a few years back. My view stems from how the US fits into the world pressure and congress having a concern the we cannot get back on our feet that fast - which translates into these types of programs.

Aug 25, 2009 03:21 AM

I don't think the Programs are filled nobility...I think the stock market dictates what happens. The stock market goes up then everyone seems to take their foot off the pedal and lets the market correct itself.

Have you notice how the good news started in conjuction with the stock market rising. When things are bad, the news is "Unemployment up another 500,000" then when good news is around that turns into "Unemployment only rises 500,000, signaling a recovery."

Aug 25, 2009 03:59 AM

Cash for Clunkers : Home Edition

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