Tax Credit Nearing the End...

Home buyers will no longer be able to take advantage of that tax break if they have not entered into a contract before Saturday, May 1st, 2010. In the past several months many buyers have been able to purchase a home and receive a tax incentive for doing so. Now the time for the tax incentive is nearing an end. There is no word of an extension and it seems unlikely that there will be one either. Those that do enter into a contract before the May 1st deadline will then have to the end of June to close.

We have seen a surge in buyers the past few weeks for this and other reason. Several agents in our office have had buyers rushing in. While many are now under contracts, there are still some that are not. One client called this last Monday stating he really wants to take advantage of the tax break before it's to late. Many agents are starting to find themselves rushing around showing homes to these desperate buyers.

While the tax credit ends the end of April, the mood is still positive. Most professionals agree that buyers will still continue to purchase homes due to the great buys and the still low interest rates that can be picked up right now. Tax credit or no tax credit, this year is looking like a positive one for real estate. A welcome change from the past couple years where values had continued to decrease.

Current Trends in our Market...

Over the past couple months the real estate market in the Seattle area has continued to see a stabilized pricing on homes while experiencing a gradual decline in homes on the market. First time buyers continue to race against the clock, trying to take advantage of the Government Tax Incentive for the first time buyer. Currently the government $8000 tax credit is set to expire on December 1st, 2009. Signs continue to reflect that we may have reached the bottom of the real estate market.

While this is a deep sigh of relief for almost everyone, there is still some unknowns that could affect different pockets of the market. Depending on what happens with Boeing, for example, areas around Everett could soon be dealing with an influx of homes coming onto the market from employees having to transfer. So sorry, no crystal ball here.

Still though, despite all the hustle with buyers, Sellers are still typically seeing 60 - 90 day market times for homes under the 350,000 price point. Higher priced homes are generally seeing a little longer market time due to the smaller number of second time home buyers in our market today. They are still out there, but most of them have to sell a home first before they can buy their next home.

Bottom line the next two months will continue to stay busy, especially for the first time home buyers. While rumors of an extension to the Governments Tax Incentive loom about most buyers do not seem to want the risk by waiting till later to buy.

- Bryan Lovell