When I see others I haven’t seen in a while and get into conversations, eventually they’ll ask me how the market is doing now. I suppose it comes with the territory of being a real estate broker. But I’m happy to do so really, because at least I know they’re getting the truth as opposed to some hyped-up or cynical, over-produced news story out there. The truth is, the market continues to show improvement and stabilize. That’s the perspective that’s evident if you look back at sales figures for 2009. Sales activity for residential homes picked up, especially noticeable in the second half of the year, as momentum increased from July through October, and about level in the last couple months of the year compared to 2008. For real numbers, in-depth analysis, charts and graphs, take a look at my Market Watch Newsletter for this month.
It’s possible that Federal Tax Credits for first-time buyers helped to stimulate some of those sales. But demand always seems to break through eventually on it’s own. Despite economic news that has had people hunkered down for the last couple years, I think they just get tired of not having the home they wanted, or moving to the place they wanted to move to. So someone pulls the trigger and buys someone else’s home…one sale leads to another…and another…and so forth. One thing different from last year, in addition to the first-time buyer credit, there is also now a tax credit for current homeowners who purchase another home. One stipulation is the sale has to be under contract before the end of April this year in order to qualify. The difference is they don’t have to just be first-time buyers. This may help to get momentum going a bit in the first quarter. I don’t think these tax credits make someone buy a home that doesn’t want one, but it may motivate them to act earlier than they would have. If you have any questions about the tax credits or the market, feel free to contact me.
It’s always interesting in January because it’s a new year. It feels like the slate is clean and a new day. It will be fun to see how 2010 progresses. Just a hunch, but I think everyone will be pleasantly surprised.
If you enjoyed this post, you may also be interested in:
