Following The Homebuyer Tax Credit

It has now been a month since the end of the Homebuyer Tax Credit and many of us are wondering how the market will react. For long-time readers of the Tallahassee Real Estate Blog, you know that I have predicted slower home sales, falling home values, but a rise in the "average" home price.

On February 17th, 2009, the American Recovery & Reinvestment Act 2009 was passed, which included a new, temporary tax credit as an incentive for first-time homebuyers. With this bill, first-time homebuyers could qualify for up to $8,000 in a tax credit for the purchase of a principal residence. The credit would cover the time frame of January 1, 2009 through December 1, 2009.

Later, it was determined that the housing stimulus was not so stimulating, so in November of 2009, the credit was expanded and extended. Now, the Homebuyer Tax Credit would include some existing homeowners plus first time homeowners in more price ranges if they were to buy a home prior to June 30, 2010 (but be under contract to buy one no later than April 30, 2010).

Examining The Results Of The Homebuyer Tax Credit Ending

The first place that we expect to see any changes due to the ending of the Homebuyer Tax Credit would be in the Pending Home Sales Report. This report measures the one-year trend of new purchase agreements, so any non-seasonal change in buyer activity would first be identified with this report.

Real Estate Graph Pending Home Sales Report In Tallahassee FloridaIn the real estate graph above, it appears as if we are seeing a reduction in the number of new real estate purchase agreements since the end of the Homebuyer Tax Credit. The yellow vertical line marks the April 30, 2010 deadline for new contracts to qualify for the stimulus, and it appears as if the market really has noticed.

The next place that we will see the effects of the ending of the housing credit will be in the new closed sales reports, but these changing results should not begin until the first week of July. The following graph shows that new real estate closings are still on the rise.

Time will tell, but the early indications are for a slowing in the housing market recovery. We should monitor local economic conditions, jobs, and unemployment to better project the future following the end of the Housing Tax Credit.

Reader Feedback And Opinions Requested

What do you see happening in the next six months in our market? Will the end of the housing credit be a minor blip, or something that will be remembered for a very long time? Will falling home equity levels restrict existing home owners in their future moves?  Will the strengthening economy bring needed relief to the housing market? What about foreclosures and short sales, will additional distressed property inventories have a major impact on our market? Let us know in the comments field below.

Please Do Us A Small Favor

We work very hard to produce daily content for our long-time readers and first-time visitors. We provide this information for free, hoping to earn your respect and trust and the right to one-day help you when selling or buying a home. Can we get your help spreading the word about our blog?

If you like the content, would you please like it or share it using the Facebook button at the beginning of the post? This simple action will be greatly appreciated! THANK YOU!

Please Like Us And Share On Facebook - Help us grow our brand!

Also like us on Facebook at https://www.facebook.com/joemanausarealestate/

Joe Wrote The Book On How To Sell A Home Today

Joe Manausa wrote the book on how to sell a home in the digital age, you can find it here“Location, location, location’ is no longer a competitive advantage. Digital marketing and going direct to consumer have made all geographical boundaries obsolete. The Business of Getting Business is a must-read modern-day survival guide for any local business to get to the next decade. Local businesses are on death ground.

They can either take a stand and re-invent themselves by embracing the digital frontier and have a chance to survive the overwhelming odds of digital direct-to-consumer capabilities that have erased all local and national business distinctions, or they can choose business as usual and accept certain death.

The Business of Getting Business is the critical survival guide for those that choose to dig in and fight.”
   – Anthony Noto, CEO, SoFi and former COO, Twitter

Get the book that explains it all, in a manner that is understanding to all, even technology neophytes. It's available on Amazon, a trusted source for consumers.

Real Estate Agent reveals in Tallahassee, Florida

Think all REALTORS are alike?

Read what people are saying about working with Joe Manausa Real Estate! You can see thousands of real customer reviews reported on Google, Facebook and Zillow at this link: CLICK HERE FOR REAL ESTATE AGENT REVIEWS.

Discussion

#1 By Joe Manausa, MBA at 7/11/2017 3:45 AM

Thanks Jim, I agree. Anything we can do to get people working in the private sector again is a move in the right direction.

Post a Comment

(850) 378-5727