First Time Home Buyer Credit Band-Aid?

New Good Faith Estimates Debut January 1st 2010
October 21, 2009
Parkland Real Estate Market Update For October, 2009
November 3, 2009

First Time Home Buyer Credit Band-Aid?

real-estate-band-aid
The real estate market has shown signs of life in the past year as sales have picked up, and inventory has dropped nationally.  As a real estate agent, I know that many Realtors would be out of the business if this tax credit was not implemented for 2009.

I must speak the truth as a local expert real estate agent.  I think that the $8,000 tax credit is great for first time home buyers.  But, what is going to happen when eventually Uncle Sam stops writing checks?  Did you know that according to the National Association of Realtors that 45% of all buyers this year were first time-homebuyers?

As I ponder the thought of this statistic, I remember the same National Association of Realtors announcing that at the height of the real estate market that approximately 40% of all home purchases were investment properties or secondary homes. Are we leading down the same path?  Have we not yet learned from our mistakes?

Are first time home buyers ONLY purchasing properties before the November 30th deadline, so the government can put some much needed cash in their pockets? In luxury real estate markets, like Parkland, first time home buyers are not a strong driving force for an increase in sales.  Many Parkland sellers are not seeing the dramatic increase in sales like neighboring communities.

So, the moral of the story is that Parkland is not out of the wood work just yet.  Sellers should expect that prices will continue to decline and stabilize into 2010.  Inventory has dropped, but is that because more sales are occurring or because potential home sellers are seeing the real estate reality and just taking their homes off the market? Also, there are over 70 pending single family short sales in Parkland.  What percentage of these pending Parkland short sales will actually close or go back on the market, or worse become foreclosures?

These questions should be addressed in our local and national media, but of course only the popular news is getting attention.  Instead of learning from the past, the media is continuing to highlight whatever it thinks is newsworthy for today and not looking at the bigger picture.  Unfortunately, once again, misinformed buyers and sellers are not reading between the lines!

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If you are interested in buying or selling real estate in Parkland, please give us a call at 954-609-0591 or send a note to the squawk.