As we know the government tax credit for first time home-buyers and existing home-buyers is over. And now we are in the “tax credit hangover.” For Metro Denver, homes placed under contract fell 41.3% from April. In April 2010 there was a record 6,616 homes were placed under contract based on stats from Metrolist. However, in May only 3,883 homes were placed under contract. Professionals in our industry knew that this would happen as the tax credit fueled thousands of home purchases by first time home buyers in Metro Denver since its’ inception in 2008.
Now that the tax credit is over can real estate go on? The answer is yes! Here are a few bright spots we can look forward to:
- The tax credit is still available if you are a “member of the miliary or other certain federal employee serving outside the U.S. They have an extra year to buy a principal residence in the U.S. and qualify for the credit.”
- Mortgage rates are at their lowest since 1971 providing additional incentives for buyers. For instance, the average rate for 30-year fixed-rate loans dropped to 4.69 percent, from 4.75 percent last week. This drop gives buyers more buying power and allow them to get more for their money.
- Buyers can find what they want as there is a lot of inventory to choose from.
- Sellers in the lower markets under $300,000 are finding their neighborhoods are in a balanced market meaning lower days on market to sell and homes selling relatively fast.
“Press on. Nothing in the world can take the place of persistence.” Ray Kroc