Now That The Tax Credit Has Expired, What do we do?
According to the First American Core logic report:
> During the first thirteen months of the Federal Housing Stimulus programs, home sales and home prices stabilized.
> It is likely that the collective set of federal programs, including the home buyer tax credit, Federal Reserve MBS purchases, and Federal foreclosure prevention programs (HAMP, HARP, HAFA), contributed to the housing market stabilization.
> Under a simulation scenario of extended Federal support, home prices are expected to increase yearover-year by more than 4 percent in February 2011. > Under a simulation scenario of Federal support ending in April 2010, home prices are expected to decline by more than 4 percent year-over-year in February 2011. The complete article can be read at:
www.loanperformance.com/infocenter/whitepaper/Tax_Credit_White_Paper_final_0410.pdf
In the next few weeks we will see articles and reporters latching on to reports similar to this one to paint broad strokes about the housing market as a whole. It will be our job to remind Buyers and Sellers that the real estate market does not work on a national basis. It is very local and in many instances can be hyper local by price range, neighborhood, even down to the street level. The graph on the article shows areas such as Boulder CO Real Estaterepresented by Denver, Aurora Broomfield actually increasing in value 4% to 5% in the year ahead. On the other side of the coin Atlanta, Georgia area is showing value should decrease by 4% to 5%. Neither scenario is bad, Boulder CO prices are on the rise and it may be a good time to start looking to sell. Atlanta, Ga looks like it should have some great opportunities for Buyers this year.
So what do we do? We do as we have always done, help our Buyers and Sellers make educated decisions to achieve thier goals.
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