It seems that today is the first Saturday in quite a while that my phone hasn't rung off the hook with buyers trying to land on a home to close before Novermber 30th in order to receive the $8000 tax credit.
Hopefully we will hear an approval for an extension soon and get a second wave of buyers to clean up some of our excess inventory. I know that tax credit helped our lower end market quite a bit. It did create a lot of enthusiasm for the bargains that we have. Let's face it. Sometimes the government actually does something right.
With our 3rd quarter foreclosure rate results made public last week, now would be the best time I can think of for an announcement of an extension and possibly an increase. I do agree that having a deadline did create a sense of urgency, but its time to unveil something to revive the momentum.
According to Realty Trac, the nationwide 3rd quarter increase was the highest foreclosure rate since they began keeping records in 2005. Florida ranked 4th in the nation. First was Nevada, Arizona was second, and California was 3rd. It seems as if these 4 states just keep rotating the order of the top 4 positions.
Here in Marion County the foreclosure filings for September were 731, down from 886 in August. We have to have some sort of stimulus to keep buyers buying or we are headed for doomsville.
On the bright side, the prices are to a point that investors can actually get a cash on cash return of 8 to 12 % on homes now that they buy as rental properties. Some areas are popular and our property management department tells me they have low vacancies.
Maybe an up front tax credit for investor buyers would also help stimulate some purchases. If they could do it for the" Go Zone", why not create a "low zone" Where the properties have dropped over 50% in value from their peak, give a tax credit to investors to purchase. My imagination goes wild when my phone isn't ringing.