What About the Housing Market After the $8k Tax Credit Expires?
The $8,000 tax refund has been valuable to stimulating the housing market, at least we’ve seen it in the Chicago market. Buyers are coming out of the woodwork and they’re excited to reap the benefits of buying before the tax credit runs out on November 30. The question is: Once the incentive is over, what will happen to our housing market?
Some are optimistic and think that the federal government will come through with some sort of extension. However, as of yet there aren’t even any rumors of that actually occurring. Without an extension or replacement incentive in sight, will buyers hop back up on that fence? Or will they continue the trend set by a temporary home buyer bonus?
Here’s one possible scenario of what will happen after November 30th… People who were on the fence are feeling the forward momentum created by the $8K tax credit. The rise in sales is chipping away at the inventory of unsold homes and potential buyers want to shop while there is still a good selection of properties to choose from. Also recent reports of price increases from the Case-Shiller Index and other price monitors have many folks wondering, Has the housing market hit bottom? A lot of buyers were waiting for prices to bottom-out to make their move. Perhaps the encouraging statistics and positive media headlines are signs of true stabilization. Perhaps it’s enough to motivate more buyers to take advantage of the great bargains available and start the ball rolling in the right direction for residential real estate.
Let’s hear your ideas/opinions about what will happen after the $8K home buyer tax credit has reached its expiration date. What are some other scenarios you think we’ll see?
Posted at 11:35AM Sep 08, 2009 by Chandra Rose in Market News Comments[0]
