This past week our listings saw an average of 1.6 showings each. This weekend was eerily slow from a showing traffic perspective. Could it be that agents and buyers took the weekend off after a long run of activity due to the expiration of the tax credits?
There is no doubt that there was a tremendous surge of activity in the real estate market over the past two months. A good majority of our clients were tax credit buyers or sellers in some way, shape or form. Some were trying to get the tax credit themselves while others were marketing a home to tax credit qualified buyers. At present there is no indication that the government will extend or offer any additional incentives to home buyers.
Is this really such a bad thing? There is a part of me that believes the expiration of the tax credit without further extension sends a message to the public that our economy is well on the road to recovery. While the financial benefites related to the credit are no longer out there for buyers, at least there is more confidence now that it is safe to get back in the water.
The April 30 expiration required that buyers have an executed contract. The next part of that deadline requires that those contracts close by June 30. So over the next two months, there will be a large number of closings that will occur. I believe that there are plenty of sellers out there who may not have qualified for the repeat buyer credit that will be looking to purchase their next home after their home is sold. This should create a residual effect that results in more new contracts over the next three or four months and right through the normally busy spring buying season.
I can honestly say that I have no idea what will happen to the real estate market in Charlotte once all the effects of the tax credit have dissolved. However, there is clearly some momentum that it has created. If the overall economy continues to improve and the unemployment numbers begin to drop, we should see that momentum continue. Stay tuned to this blog to find out.