As time runs out for the $8,000 stimulus for first-time home buyers we see a lot of press coverage on the real estate market- good and bad. Most notably, we have seen a throng of articles about how the buyers in our market today seem to be young, first-timers. While activity in the office seems to back this notion up, we shouldn't forget those of you that may be more "young at heart," than young in age. Everyone, young, old or in-between is in an advantageous position.
Sellers across the market are pricing their homes more aggressively, and we can almost guarantee this will continue as we near the deadline for the tax credit. While this is an obvious advantage for those who qualify for the credit, it has far-reaching benefits for the entire industry.
ALL buyers are benefiting from the buzz created by the tax credit. Think about it... Sellers are pricing their properties to compete for those first-time home buyers. Typically, these buyers are going to buy in a price range under $200,000. Of course, not all buyers in this price range are first time buyers, but they will all benefit from the competition between listings in this range. Whether it's your first or your fifth, you can probably locate a great deal on a reasonably priced home.
Three words: Lookers to Buyers
As the economy struggles people are often seperated by their aversion to risk. Those who tend to be fearless will benefit from great opportunities in foreclosures and undervalued assets. Those who fear the sky may fall will surely avoid any large purchases such as homes and cars. My big point is this: what about those in the middle? Steady job, decent savings, but nervous about the risk. These are your open house lookers and your internet crawlers. They probably know the inventory better than most Realtors, but something is keeping them from buying. The tax credit may be just the right push to get that looker to be a buyer of your home. Be excited if you're a seller right now! The worst is hopefully over and people are buying more every day.
In additon to the advantages to the buyers and sellers of homes right now, the tax credit benefits all industries associated with real estate: mortgage, home improvement, appraisal, etc. The benefits are far-reaching to say the least.
Last but not least, when the credit is finally over the market will be in a better place. The inventory of homes will be more appropriate and the market will start making strides to operate as it should. Stay tuned, it's going to just keep getting better.