Real Estate Life After the $8000 Buyers Tax Credit
I was talking to a potential home buyer yesterday, and she mentioned that it was a shame that she was no longer able to take advantage of the $8000 Buyers Tax Credit. That program, which ended on April 30, 2010, provided tax credits of up to $8000 for first time home buyers and move-up buyers as well.
Perhaps you saw this story on the $8000 Tax Credit, but if you didn’t take a few moments to look it over.
The $8000 Buyers Tax Credit Worked……Or Did It?
Yes, it worked. It worked to the benefit of a fairly large number of first time buyers, making home ownership possible from a financial windfall. It worked for real estate companies across the country who benefited from a larger number of home sales. It worked to temporarily increase demand for homes in what has been a difficult and taxing real estate market.
But it’s effect was, as is most pay-out programs the government concocts, just a ripple in the stream of the financial health of the real estate market. Prices rose slightly as sellers felt the demand for first time buyers. Now prices have started to fall as sellers begin to feel the lack of that demand. The spigot has been turned off.
The $8000 Buyers Tax Credit worked to sustain the propped up and unnatural marketplace that arose from this particular stimulus package. It also, in my opinion, worked to delay the inevitable natural work of the real estate marketplace, and in so doing, has left me with a sour taste in my mouth.
We’re back to life as it was intended in the world of supply and demand real estate world. Not so many buyers. Wary sellers. A market that seems stagnant at times, and unstable at others.
What Should Homeowners and Buyers Do Now?
First, contact us. It’s actually easier to understand how you can benefit from buying a home, selling a home, financing a home, or deciding whether owning a home is right for you if you realize that home ownership has always been local…..not national, nationalized, or controlled by the government.
We know this market, understand homeowners and their needs and wishes, and can help you determine if now is the best time to sell or buy.
Oh, by the way…..a little secret. It is that time.