As many of you know first time home buyers are driving our current real estate market here in Kansas City. First timers are buying homes which allow for move-ups with many other homeowners. And all of this is artificially stimulated by our federal government’s home buyer’s tax credit plan started by the Bush administration and continued by Obama. I’m not going to get political here, just give an opinion.
I have four pending home sales right now. February and March have been busy as well. I fully expect the bottom to fall out for 60-90 days post April 30. Sure, we’ll have closings in May and June left over from April’s activity. But new sales? I expect a sharp drop.
If you are a home buyer you need to be in a hurry. 10% of a home’s value up to $8,000 returned to you post closing is nothing to sneeze at. If you are a home seller you need to make sure your home is priced correctly…today! You have 9 days to find a suitable buyer before what I believe will be a cooling off period for home buyers.
Yes. People will still move, lose jobs, get promotions and invest in real estate. It will just be at a slower pace in May, June and July. That’s my $0.02.