Now that the Tax Credit has expired what should buyers do?

Posted: May 4th, 2010 | Author: admin | Filed under: FHA, Misc Real Estate, Purchase Loans | 1 Comment »

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Ok.  Check this.  What causes prices to go up?  Either reduced supply or increased demand.  Would you agree?  So, now that everyone with a rich uncle or generous grandparent has bought their house to take advantage of the tax credit what does that mean to you, the buyer who “missed out” on the 8,000 “obama tax credit”? 

Let me tell you why I feel this 2nd half of 2010 is going to be a ROCK STAR time to buy your first home or even dip your toes into purchasing investment properties.  Ready?  Here goes.

With the tax credit expired, there will likely be LESS buyers to compete with.  Pretty cool, right?  If you talk to anyone who’s purchased a home, it’s not uncommon for them to have bid on multiple homes because of the increased competition.  In fact, the tax credit made it more of a “sellers market” than people will ever admit. 

Ok, so we have fewer buyers to compete with.  That’s good.  Now, how bout financing?  Even though the Fed has halted their mortgage buying, rates barely budged.  Why?  I guess you could say it’s a flight to “safety”.  You see, the stock market’s had huge gains and the international debt market (i.e. the PIGS you hear about on CNBC) in shambles, the market place is still digging owning mortgages yielding around 5% because their costs of funds are so low.

Ok, so less competition.  Good financing.  Last but not least?  There’s STILL ample supply of foreclosures and short sales coming down the pipeline INCREASING supply of homes.  So if I were a betting man I would bet that the 2nd half of 2010 is going to be a GREAT time to get into your first home or investment property whether it be a condo in DT Minneapolis or St Paul or a big shack out on Minnetonka or the St Croix. 

Got questions?  Give me a call at 651.210.9593. 

P.S.  Sorry for the delay in updating the blog…been busy helping those getting the tax credit with their financing

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