After the National Association of Realtors (NAR) posted a 27% decline in previously owned homes in the month of July 2010 hitting their lowest mark in almost 15 years, the President and the rest of the real estate public are thinking about ways to try and stimulate the real estate market.
We here at the Parkland Parrot Real Estate Team wrote an article back in May entitled: Calling President Obama! Bring Back Real Estate Homebuyer Tax Credit! The government should have continued to offer the first time homebuyer $8,000 tax credit in order to help boost the real estate market instead of letting it expire.
During the tax credit, the real estate market saw a huge surge in sales! Earlier this year, we had over 12 pending contracts alone just from first-time homebuyers purchasing properties in Parkland, Coral Springs, Coconut Creek, and Margate. Inventory was selling, especially short sales and foreclosures. But, once the tax credit came to an end, potential buyers went back on their real estate fences.
Here in Florida, we are approaching an election year for Senate and Governor. All major candidates including Governor Charlie Christ and Kendrick Meek both support reinstating the first-time homebuyer tax credit. I just wish the government would open up the tax credit to ALL potential buyers. If President Obama and the government are truly looking to stimulate the real estate market and shock some life back into potential buyers, NOW is the time! With record low interest rates, even lower now than during the past tax credit periods, buyers would again start gobbling up homes in Parkland and many other South Florida areas causing prices to stop declining and inventory to go down.
This past weekend, HUD Secretary Shaun Donovan said on CNN’s “State of the Union” program, “The July numbers were worse than we expected, worse than the general market expected, and we are concerned. That’s why we are taking additional steps to move forward.”
Come On Mr. President & Congress! It is time to take the necessary steps to seriously stimulate the real estate market for the long haul!
If you are interested in buying or selling real estate in Parkland or South Florida and are looking for experienced Realtors, please do not hesitate to contact the Squawk at 954-609-0591 or send us a message here.
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