The tax credit is now done…it did what it was supposed to do which was to help persuade people who were financially capable to purchase a home in times of unstable prices and a lot of inventory.
Whether this credit supplied a band aid or a permanent fix in the market probably won’t be seen until the end of the year. I have read varying opinions. Some economists think that the number of house sales will drop drastically after the deals made in time for the credit close. (June 30th). Other economists and realtors feel that the tax credit gave the housing market a “kick in the pants.”
There are differences of opinion on this whole matter. I do know that a lot of the buyer transactions that we have done the past few months were directly a result of the tax credit. MLS stats showed that the 4 county Milwaukee metro area showed a 20% increase in the sale of existing homes compared to March of 2009…lots and lots of activity in the price range of homes less than $200,000.
Congress has not extended the home credit this time. It will be interesting to see if the sale of homes in the lower price range will now give the mid-price range home sellers a burst of activity as this domino effect is felt in many aspects of real estate. The lower priced home sellers who did sell may now be ready to step up into a higher price range and put offers in on mid priced home. We are indeed looking forward to this burst of activity with mid-priced homes and hopefully can assist you in the sale or purchase of your next home!
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