Posted by 101livescan on 5/17/10 10:42am
Msg #336797
Biz in 2010, what lies ahead
Out of the blue, I began getting these emails recently. Thought I'd pass it on, some interesting news bulletins about our biz.
Tax Credit, the short term situation.
By: Eunice Mejia, Editor, May 17 2010 9:00 AM ET
After the homebuyer tax credit expired, the path that housing market has taken, has been a two way opposite direction.
One of the paths that have taken is recovery, sales and prices are rising. But on the other way, interest rates and repossessions have done it too, and there are more than a million foreclosures that are under the shadow.
Richard DeKaser, an independent housing market analyst said that he can see a “mini collapse, in the short run” but at the end of 2010 can turn into a positive end.
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Chief economist for National Association of Realtors Lawrence Yun, says that “in the months immediately following the expiration of the tax credit, we expect immeasurably low sales” but since the credit helped the housing market to stabilize when it was needed the most, they could recently see their first year-over-year rise.
So the prognosis that experts have arrived to, is that this negative short-term situation will be positive by the end of 2010.
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Reply by Moneyman/TX on 5/17/10 12:18pm
Msg #336812
I've seen reports that some people in the market were actually waiting for the credits to expire. Their theory is that they can save more money afterward. With the credit they would get an $8K reduction on price, after the credit expires, business would expect to slow down thereby reducing the price of the home by far more than the credit.
The idea may actually make sense and a good RE agent might find it a good marketing tool and drum up business with it. From the reports I have seen some people have already seen a 10-20K drop in the price on a property they have been looking at.
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Reply by JanetK_CA on 5/17/10 2:17pm
Msg #336843
Refi apps up, purchase apps down?!
Thanks for the info, Cheryl. It's sure nice to read something even a little bit positive for a change. Here's another view that may support a more positive outlook in the short term - at least for us:
http://www.sourceoftitle.com/article.aspx?uniq=6199.
As usual, it seems that interest rates are a key driver for our businesses.
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