The Tax Credit is Expired – Now What?
As you all know, the tax credit deadline expired at 11:59 pm on Friday, April 30th. If you didn’t find a property to buy and get under contract, you no longer qualify for the free $8k or $6,500 move-up credit. So how do you think April numbers are going to shape up now that the final push is over? Take a look at the number of properties that went under contract:
April 1 -8: 86
April 9-15: 95
April 16-22: 107
April 23-30: 104
Total Properties Under Contract in April 2010: 392
April 2010: 392 v April 2009: 287
March 2010: 315 v March 2009: 222
Strictly looking at the numbers…it’s hard to deny that the market is picking up and/or that the tax credit played a part in that. A more interesting number? Of the 392 properties in April, 337 were under $800,000 (the price limit to qualify for the tax credit).
So where does that leave us? Inventory is down to 765 active properties (as of 10:45am this morning). Last year, active inventory was just over 1,000 properties. That means we’re down 25% in inventory levels. The market will take some time to recoup and bring inventory back to a level where we’re balanced again…because remember: when supply is down and demand is up…prices go up.
NOTE: Military personnel, both active and retired, are still eligible for the $8k Tax Credit. The deadline for military is April 30, 2011.