Most people keeping track of real estate predicted that after the First Time Homebuyer Tax Credit would expire, sales would dwindle as well. This tax credit was initially enacted in 2009 and extended for buyers who had a binding sales contract by April 31, 2010. The credit offered $8,000 for first time homebuyers and $6,500 for repeat buyers who met the provided guidelines. The sale of new homes was definitely on the rise across the board and provided a much needed boost to the economy. When the tax credit was extended in November 2008, many buyers on the fence about purchasing a new home jumped in and began their search in earnest and sent their real estate agents out in front of them to go find something.
While the atmosphere portrays a slow future, UrbanLand Company’s Realtors and clients have seen otherwise, especially over the recent weeks. UrbanLand Company’s Broker, Gerard DiRuggiero, has seen “…a healthy pick-up of sales activity across the board. We are also pleased to note a continued steady pace of traffic at Open Houses, as well as a spike in attendance for UrbanLand events.” Realtor, Georgette Daher, agrees, “At the last two Open Houses for The Chelsea Condo, we had over a dozen visitors at each and had four ratified deals within two weeks.” (The Chelsea Condo is a nine unit boutique building in the Columbia Heights neighborhood.)
Continued sales activity would not only benefit the economy, but home values as well. Although the tax credit was incentive for buyers to get into the market and help boost the economy, competitive pricing has also been a driving force behind this surge. Now the questions remains if prices will remain low enough for new buyers to get into the real estate realm AND if there will be enough inventory to support the demand. Stay tuned…