Home Sellers: Did you just lose $8,000. ?
Looking into the abyss two years ago, the government threw a Hail Mary pass.
Legislation that provided for $8,000 in tax credit for first time buyers, and subsequently in the $6,500 range for other purchasers expired yesterday.
As a reasonable and prudent person, I would have to ask myself why I would pay you, Mr. Seller, another $8,000 for your home today instead of buying yesterday.
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The question now becomes what happens to all that accumulating debt the government expects the taxpayers to subsidize.
I read a report the other day that suggested that by 2020 97% of the gdp will be used just to make all the payments on social security etc without even addressing the defense and education budgets.
Math is a four letter word, isn’t it?
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Locally, sales of homes are up 34% from last year, but prices are down 25%.
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The good news is there is always opportunity. Whether we are a buyer or seller, timing is crucial, and transaction costs need to be considered.
Buyers, my advice is negotiate hard. Banks have been holding property off the market so as not to deflate the prices. Be patient.
Sellers, my advice is be reasonable. Consider your carrying costs and lost opportunity if you are inflexible.
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The sweet spot of the home buying season usually ends around here by the end of May. This year, it may have already passed.
Real Estate Blog
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