Tax Credit – What Did It Do?
So what did the home-buyer tax credit do for us? And what did it do for the country?
Here’s one potential problem: the elevated volume of transactions may have skewed the market. Re/Max reported that June levels are still up from a year ago, but only time will tell if people are still riding the wave of the now expired tax break.
But what about all those houses looming on the horizon? Will there be a market for all of them? And did the rush to get in closings before the end of the credit mean we’ll have a leaner summer?
Places like Philadelphia and Boston saw over 20% increases in sales over this time last year. And home prices were up a nice 3.5% in most major cities (mostly on the West coast).
And Re/Max reports that homes aren’t staying on the market as long as they used to. 81 days is the new average, down from 89 days a year ago.
So the big question remains whether the “shadow” inventory still looming out there shrunk or grew. Did the tax break take a big chunk out of those homes, or are we still going to see a flood on the market in the coming months?
What are your thoughts? And what have you seen in your area? Leave a comment here and share your observations.
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Kathy
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sunbaskn
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Pacwestaquisitions
