April 30, 2010 marks the end of an era. No, this may not be anything life changing, but in the real estate world we live in today, it is significant. April 30th is the last day a real estate purchase contract can be written so that the purchaser of that home can qualify for an $8,000 or $6,500 Federal income tax credit, but that's not all. This is HUGE! Here's why:
When we all witnessed the mortgage meltdown, the real estate industry was turned upside down. Agents and lenders alike saw their business fly out of site as quickly as a mobile home in an Oklahoma tornado! The following year and a half, we watched as the Federal government put together incentives to help support the industry. One by one, those incentives have dissipated until April 30th - the last one goes away.
NOW WHAT? You're not the only one asking this question. Investors on Wall Street are watching closely to see just how stable the market will be once the supports of the government are finally pulled away. At the end of March, the government ceased buying mortgage backed securities, which artificially kept mortgage interest rates at their lowest levels ever. Come April 30th, the Federal government will no longer pay a person to buy a home. Is this good for the market and for our economy? Only time will tell.
Since rates have begun to climb and the purchase incentives begin to fade, it will surely be interesting to see the market's reaction. In my opinion, we will continue to see interest slowly rise. Also, as the market stabilizes, it's only a matter of time that we see housing prices climb. After all, Arizona is STILL a very attractive place to live. Our market will begin to steadily grow, at the rate it SHOULD, not at artificially inflated rates we've seen in the past.
Bottom line: There is no better time than now to get your production in gear! March was better than April, but April, surely will be better than May, June or July! Time is flying by... "There's no better time than the present!"
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