As many of you know i've been blogging regularly about two particular topics: the end of the Federal Homebuyer Tax Credit (April 30th) and how the 250k and below price range has been extremely hot for the last year (seller's market, multiple offers in a few days, homes selling for over list price). Well, the tax credit is definitely one factor with the lower priced homes being such a hot market. First time buyers were seeing the bottom of the market, low interest rates and with the tax credit, just couldn't resist.
As the end of the tax credit was drawing near, industry experts were not sure how the market would react. Would it just be a night and day change on May 1? Or would it be a transition period to a balanced market? I got the answer first hand last week...
I put a new listing on the market on May 5th in Antelope and received an offer within 6 hours! When it was all said in done, we had 15 showings in three days and four offers, all over list price (the home was listed at $189,000). We accepted an offer on Friday night and are now in escrow, and a handful of buyers behind them hoping it falls out of escrow to get another chance at it.
Do i think the market is going to continue to stay this way forever? No, but it definitely appears that with the California state credit beginning in May and with a large pool of buyers that missed out on the federal credit cut off, the market is still staying HOT for now in the lower price range. The summer months should be a transition to a more "normal" market where inventory is expected to increase some and interest rates are supposed to be creeping up a bit as well. But for now, buyers are still out even with the Federal tax credit deadline in the rear view mirror.
clear skies,
_ doug reynolds
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