Anyone know the answer to this at this moment? I certainly don’t.
What I do know is that I’m not enjoying the current set back in prices and showings every since April 30th when the tax credit expired.
I think we all had a hunch this was going to happen, and I have to admit I was probably too optimistic about what would really happen when the tax credit expired.
But now with the perspective of being two months beyond it, It’s very clear to me that prices at the low end are going to correct downward in the 5 to 10% range. Which is pretty annoying, since I have over 20 houses in that range right now.
It’s not all doom and gloom, we’re still getting stuff under contract, and the showings seem to be slowly picking up. But the most activity I’m seeing is in the middle to high end of my price range. The 200K and above houses are getting more activity than the 100-200K houses. Which is flip-flopped from 3 months ago. In April it was a feeding frenzy for anything under 200K.
Government incentives…not sure what I think about them…but I think I don’t like them. I’d personally rather see the market play out on its own all the time. But I can’t deny that I capitalized on the incentives and was happy to take advantage of the easy selling while it lasted.
I just hope the low end correction isn’t as drastic as it was in 2007 with the mortgage melt down…I doubt it will be, since we’re still pretty low…but I’ve been wrong before!
Filed under: Market Trends, Updates
