With the April 30 homebuyer tax credit deadline looming around the corner, it seems there's a growing sense of panic amongst real estate agents, sellers, buyers, and the public in general. What is going to happen to the real estate market after April 30? No one can say for sure, but in this interview, Steve Harney provides some insight and most importantly what we all need...hope.
I think that you always should be building your business, this insulates you from ups and downs in the market.
Maybe it's because I sell real estate in Manhattan, but I don't think that sales will stop cold when the first time buyers tax credit goes away. The average one bedroom apartment sells for over $600,000, so the number of buyers who can qualify for the credit is limited. Co-op boards have income-to-debt ratio limitations (usually 28%) that are tougher than any bank. That leaves less expensive one bedroom and studio apartment buyers, but the amount inventory of those apartments on the market is very low.
I understand that New York City, especially the Manhattan apartment market, is very different than the rest of the country. However, I think brokers should ask themselves how many of their buyers would not be buying if they were not getting the tax credit, and how many of them should be buying if they couldn't afford to in the absence of a credit. The sky is not falling.
There are other reasons that I think a "double dip" is coming, but that's fodder for another post.
Ross -- Great point. Even in the busiest of times when we think we don't have time to prospect, we need to take the time. Thank you for stopping by!
Louis -- I agree with you -- I certainly don't think sales "will stop cold," either. And while I try to stay informed of what's happening and what's expected to happen, I think it's important for all of us to stay focused and optimistic through these times.
Author Bio: Peggy Wester has had her real estate license since 2002. She helps buyers and sellers with the purchase and sale of their residential homes, primarily in Ozaukee and Washington counties.
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