The end is here for buyers who want to capitalize on the Federal income tax credit.
This government stimulus has done a lot for the housing market with home sales up by more than 25% for the month of March, according to the National Association of Realtor s.
Realtor s throughout the country are now holding their breaths in the months to come waiting to see if the stimulus was the only reason that the market improved faster than any other period in five decades.
After the last few years of decline and uncertainty, it’s no wonder that some people in the industry have their doubts.
It is clear that I don’t believe that the stimulus money is the only reason for the uptick in the market indicators, but it certainly helped. The incentive was a great reason to buy.
If you have missed your opportunity to purchase and earn the credit, don’t fret, there are still plenty of bargains out there that will more than make up the loss.
But, how will this change affect the overall real estate market? Well, if the number of buyers dries up, then of course that will increase supply and lower prices further. If the number of buyers remains stable, then we can expect to see the steady rise in sales and prices … at least until mortgage rates jump.
Calculate these factors into your equations when making your investment decisions. The real estate market, like all markets, is dynamic and many variables affect the outcome.
As the sales improve, the unemployment rate declines and lenders release more money into mortgages, we will move further and further away from the uncertainty that has hurt our consumer-driven economy.