Buyers rush to meet tax credit deadline

According to Campbell/Inside Mortgage Finance, nearly half the homes sold in March were to 1st time homebuyers (defined as a buyer who has not had an ownership interest in a home in the last 3 years).  The benefits to them were up to $8000 tax credit on the purchase, which really helped drive sales in the last few months.  What we are seeing is the normal spring into summer increase in sales, coupled with this tax credit, which is really heating up the market, especially in certain price ranges (those that are considered 1st time homebuyer neighborhoods). 

While this is all great news, and we are seeing the stock market start to come back up too, one of the things that I worry about as a Realtor is the after - effects of this.  What happens come April 30th, when the tax credit expires?  I know for a fact that a lot of the buyers in the market are going to get back on the fence and wait around again, I just have this feeling.  I hope it is not like Cash for Clunkers...which totally tanked the car market once it expired.  Only time will tell.

Until then, best regards--

Ben Blonder
Broker/Owner, Kapital Real Estate LLC
Cell 970 420 6166
ben_blonder@yahoo.com