Calling President Barrack Obama & The Federal Government! We need to keep the real estate market moving in the right direction. No matter if you are a Republican or Democrat, there is no doubt that the $8,000 first time home buyer tax credit made a positive impact on the real estate market, especially in South Florida.
When all parties in Washington D.C. can FINALLY agree that the tax credit was a success, why can’t we continue the momentum? CondoVultures.com, a real estate research firm, concluded that approximately 22,000 homes in Dade, Broward, & Palm Beach County are currently under contract and awaiting to close.
As a result, there was a 138 percent increase in pending sales compared to November 2008, with many buyers paying over asking price. The Parkland Parrot Real Estate Team had over 11 pending contracts in the past two months. We contribute 80% of the sales due to the first time homebuyer tax credit and low interest rates.
Now that Uncle Sam has stopped writing tax credit checks and interest rates are on the rise, many skeptics believe that sales will decrease in May, June, and July. People also forget that FHA mortgage guidelines will tighten in the Summer months making it more difficult for buyers to purchase properties. Will these buyers go back on the fence? Will mortgage rates reach 7% by 2011? Unless the President or Congress steps in and reinstates the tax credit, only time will tell!
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If you are interested in buying or selling a real estate property in Parkland and need to speak with a Parkland Realtor or South Florida Realtor, please give us a call at 954-609-0591 or send a note to the squawk.