Will the Real Estate market sales come to a halt without the tax credit?

By
Real Estate Broker/Owner with Remax 24/7 Real Estate

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.

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About Me: I have been in the real estate broker since 1993. I have a BS from University of Wisconsin-Madison (92). I have experience in real estate, land (subdivision) development, new home construction, and mortgage finance. This experience gives me a well round knowledge base of all aspect of a home and I use that knowledge to help sellers and buyers with highly informative sale style.

I am the first nationally certified distressed property expert (CDPE ) in the fox valley area and specialize in Foreclosures and Short sales. What this means? As a CDPE I am a skilled negotiator with banks on a national level and a savvy marketer of real estate. I set the right market determined price and convey the correct information to the banks, I can help successfully facilitate both residential and commercial situations where financial stress and market changes result in non-performing (upside down) loans as it relates to real estate property. This net result to my clients, is faster resolution and reducing long term credit damage.

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Thomas J. Otis Broker Associate; REALTOR®, ABR®, CDPE©, EAH,e-Pro RE/MAX 24/7 Real Estate 2835 W. College Ave. Appleton, WI 54914 Direct: (920) 284-8508 Office: (920) 734-0247 Fax: (920) 560-5438

email me: totis@remax.net

Web: www.gotorealestatetom.com 

Smart, Aggressive, Professional

Bank Foreclosure and Short Sale Specialist CDPE: Certified Distressed Property Expert EAH: Employer Assisted Housing certified

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Tags:
real estate sales
home for sale
wisconsin
foreclosure
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appleton
neenah
oshkosh
expired tax credit

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Rainmaker
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Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

I have four listings, and only had 2 showings all last week after the credit expired.   SURE hope it comes back, and we get showings once again!

May 12, 2010 03:25 AM #1
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

HA!  My phone has been so quiet in the past two weeks, I have lots of time for other things.  Hopefully, it's just temporary although, some of us believed all along that the tax credit would push folks forward to buy and we'd see a fall off in May.

We were right. 

 

May 12, 2010 03:28 AM #2
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