The burning question on ever Buyer, Sellerand Realtor's mind is - When will our market stabilize? If we each had a crystal ball, we could predict that information for the world to hear and see. Unfortunately, we do not have a crystal ball.
A healthy Real Estate market is one that has no more than 6 months of inventory in it. Nationally, we currently have approximately 9% of inventory on the market. So, what does this mean. It means that we are still in a Buyers market for homes.
In order to maintain a healthy Real Estate market, we must have an equal amount of Buyers who are ready, willing, and able to purchase homes and Sellerswho are willing to sell at market value. Without both of these critical components, we will have a disconnect in our market. This is what we are currently seeing. Buyers are searching for the deal of the century, therefore taking much longer to make a decision to purchase. Buyers are also waiting for interest rates to drop even further before making that all important decision to sign on the dotted line.
The 1st Time Home Buyer Tax Credithas increased 1st Time Buyers to purchase. Just over 50% of the homes purchased last month were 1st time homebuyers. In order to reach more home buyers, we desperately need for Congress to pass the $15,000 primary home purchase tax credit. This tax credit would enable ANYONE who was purchasing a Primary Residence to be eligible for the credit.
Our housing market is in much better shape then it was a uear ago when we were faced with 18+ months of inventory on the market.
Although some are waiting for interest rates to lower even further, we are seeing interest rates at an all time low and it is a GREAT TIME TO BUY A HOME!
Link to Video Jim Gillespie, President and CEO of Coldwell Banker
Christine Stalsonburg, Realtor
231-944-0854
www.northernmichiganrealestatecs.com
Coldwell Banker Schmidt Realtors
402 E. Front St. Traverse City, MI 49686
Christine Stalsonburg, Realtor
Re/Max Bayshore Properties
231-409-4140
Christine, I think we'll have to see a marked improvement in the employment numbers before we experience a return to a stable housing market. And the short-term prospects aren't very good. For those who can afford to buy, however, there are great deals out there and great interest rates available.
John:
You make a valid point. Currently we are nationally at about 8% unemployment. Although this is a fairly high number, we have to consider that 92% of the remaining population is still employed. Take this one step further and all of the UAW employees that are laid off are still receiving 95% of their salaries as part of their contract with the auto workers.
The housing market recovery will help the unemployment rate, so are we back to which comes first - the chicken or the egg?
Maybe congress will pass the $15,000 credit next year. Wouldn't that be wonderful?
That would be great. I think we would see more buyers come to the table if they could take advantage of this credit.
Christine,
I couldn't agree more. The $15,000 tax credit to ALL homebuyers would have been huge. With as much other pork as went thru with the stimulus package, it sure would have been nice if the credit hadn't been pared down to $8,000 for First Timers only.
Hi Christine: Don't forget that you don't have to wait until next year to get your $8,000 tax credit. Simply re-file your 2008 1040 as an amended return and include your $8,000 credit on line 69. You can refile as soon as you have closed!
:)
That is a great point that I forgot to mention. You can get the credit immediately, even if you have already filed your 2008 return. Thanks for the reminder
Marty:
You are right, there was plenty of pork that went through. There is no reason that we should not have seen an across the board $15,000 to help stimulate the housing market.
You're right. No one has a crystal ball. It's a wonderful opportunity for both buyers and sellers, especially sellers buying another home. Even without tax credits, interest rates are at an all time low and the market is flooded with great buys! Nonetheless, there's something in human nature that always wants just a little more...I think it's called 'greed'. The market here is also picking up and buyers are slowly coming to the table.
westfieldcarmelhomes.com
Christine- Been hearing rumblings that Florida and Califirnia are stabilizing to some degree and that is always good news when it comes to real estate. Not expecting any marked improvements around here for awhile though so its business as usual (or unusual) for now.