First Time Home Buyer Tax Credit: Will The Winter Affect It's Impact?

Not sure about Texas but Winter impacts real estate in Minnesota but anything will help

Hi Matt... I am usually busy at year end and early in the year, so I don't know that the tax credit will have much impact on my business. 

Our market slows down when the weather turns cold.  I'm hoping that this winter is different.  We'll find out soon.

Good content, good video with minimal use of hand gestures visible.  :o)

We have a bit of rain here in Washington. Everyone claims that homes don't sell during the winter. My winter months are usually some of the busiest times of year for me. The market is what you make it.

It will be interesting to see.  Some major economists said that they have exhausted the pool of first time home buyers, especially with rising unemployment.

Hi Matt! I wrote a post not too long ago about the tax credit being a cherry, not a carrot. I believe they will extend something related to the credit (although we have all seen the "expected" become the "unexpected" where congress is concerned) and I think the mere discussion is simply icing the already slow holiday period. Buyers still need to be qualified, have jobs and a downpayment as well as a decent credit score. If they are all that then why in the world wouldn't they wait til Feb or Mar when sellers will be really ready to deal? So be it. My buyers get my advice based on what THEY need for THEIR particular situation..if they can wait and want to, I'm cool with that. If they cannot, we will move forward with low interest rates and skillful negotiating, regardless of whatever Congress has up its sleeve!

I can't tell if it is going to pass or not and if it does what is the impact going to be?? I quess anything is better than nothing.

shelton

Matt,

I would think that it would be better served it it would start somewhere in the early Spring.  If it was to induce movement during the winter slow down I am not to sure it will do it.  The second part of your question will it help sellers in a move up situation, maybe but I still have the concern of buyers out in force during the winter months.

Just saying........

Probably not an appropriate response to your question, as I am not a realtor, but now that Congress is considering extending the FTHBC AND offering a credit as well to those who are NOT FTHBs, what is the potential effect on the 'big picture' (the economy, the deficit, inflation, etc.) when everybody who is 'active', one way or another, in real estate is subsidized by the stable taxpayers who are maintaining their income levels and repaying their obligations as per their agreements?  These 'stimulae', 'tax credits', and other 'incentives' have to be paid for by...someone!  'We' (our representatives) are doing nothing more than crafting programs to make sure that we have debt that will be carried over into the next generation(s?).  The 'free market' cannot correct itself if the government (us?) owns everything big and 'holds the paper' on everything else -- essentially eliminating the 'free market'.

Even here, in sunny Southern California, the market slows down during the holidays.  However, the weather is not much of an issue.  The slowdown is more related to people being busy, preparing for Thanksgiving and Christmas get togethers, shopping and reconnecting with old friends.  I would expect the tax credit to have some impact, but not a lot.  The addition of move up buyers may have more impact than first time buyers.  Now they see something in it for themselves.

Hi Matt,

The tax credit extension eliminates pressure from deals inked months ago that are awaiting short sale approval. It takes timing pressure off some regular deals too (move up buyers, etc.) that really need more than a 30 day escrow period.

Our spring market really starts after the superbowl. The good news is that buyers can wait over the winter, start looking for a deal in late February/March, and get contracts signed by April since they have until July 1st to close.

I would expect an above average number of buyers over the winter because of the credit, especially for buyers who do not have school age children. NAR research indicates that 60% of buyers now have no children at home.