I am sure like most of us, myself included, are happy for the break from the "all at once" deadline rush to get under contract to receive the tax credit. My local market was swamped with people buying, and sometimes over paying for homes because so many offers where being written. It appears that the general public needs a "whats in for me" incentive and a deadline to get them off the fence to buy houses. I do believe that the tax incentive, for all its good and bad attributes, did help people over the fear of a "decline after purchase" risk. The tax incentive covered their downside risk in their minds. I think both first time and existing homes owner were brought into the market because of the tax incentive. Now I have seen a significant drop off in property inquires, and showing requests. That is an indication of future business. This drop of in prime marketing season, I think, is a reflection that the tax incentive is over. Many of us experienced the drop off between the extension and the last deadline in November 2009 until March 2010.
In addition I am surprised, buy discussions with other agents, and there lack of knowledge of the double underwriting that is coming down the road for lending. My buyers that are working with Wells Fargo in the past weeks have expressed absolute frustration over the process of loan underwriting. They are constantly being asked for more information, more detail. This along with the lack of the tax credit, yikes!
It my my real world opinion is we are not even remotely out of the woods until this option arm reset is gone and behind us and the "perceived" economy gets back on track and people get back to work. Short sales and foreclosures are still on the rise here.
What I am curious about is real world agents feedback on how they feel about the market future without market incentives. I would like other agents to chime in on there opinion if the market will suffer without real estate tax credit.