subject: 5 Months After The Tax Credit Expiring â€" Effect On The Market? [print this page] Dan Polimino: Hi, I'm Dan Polimino with coloradodreamhouse.com in this week's market update for the final week of September 2010. This week's post is entitled, "What a fact did the tax credit expiry five months ago have on the market?" Kind of a long title but I'll get right to the point. So here we are at the end of September, and back at the end of April, the tax credit expired and what has happened since then? Well, if you take a look at MLS statistics here for Denver, we've seen a 30% decrease in sales.
A lot of people didn't think that the tax credit expiry would have very much effect at all on the market. But what did it do? The tax credit really propped up the market. It propped up the real estate numbers, and it gave people a good feeling like the real estate market had turned the corner, and we had some consumer confidence for a period of time. But in reality, we had a very small group, a very small population that were "tax credit buyers" that were propping up the rest of the entire real estate market, because what happened is, is it had a ripple up a fact.
People in those middle price ranges started to think, "Well, hey maybe that real estate market has turned around. Maybe we should go out and take a look." And then the people on the higher brackets said, "You know, hey maybe things have turned around. Maybe now will be a good time to go ahead and buy or a safe time to buy." And what we saw was a very small segment, propping up the entire real estate market.
Well, five months later we've got a 30% decrease in sales. So it had a big impact. But I don't think another tax credit is the answer. So don't get me wrong. That's not what I'm proposing. Eventually, the real estate market has to stay in on its own two feet without more incentives from the government.
Bottom line, what am I getting to? There are a lot of hungry sellers out there again. There are a lot of sellers who want to make deals and want to sell their homes. So if you're a buyer, you're in a terrific position this fall because you have incredibly low interest rates, inventory is rising again so you have more homes to choose from, and you have hungry sellers who are willing to sell at some of the lowest prices we've ever seen. If you'd like to talk with me more about this, you're buying or selling a home, feel free to contact me at coloradodreamhouse.com. Have a great week.
5 Months After The Tax Credit Expiring " Effect On The Market?
