Now that we have passed the April 30, 2010 homebuyer tax credit deadline to enter a qualified purchase contract, the question becomes "Is there life after the tax credit"?
Survey Says!
One way to get a perspective on where the housing market is heading in Arizona is to ask those that are working with buyer and sellers every day. Long Realty Company recently conducted a survey of its agents to find out what their perception is on how much impact the homebuyer tax credit has had and in what direction the housing market will go for the balance of 2010.
Here is some background information on the survey:
230 Survey Responses
846 closed transactions reported in the first 3 months of 2010 by the respondents
606 pended transactions (in escrow, not closed) reported in the first 3 months of 2010 by the respondents
Survey Results
What percentage of your buyers will take advantage of the home buyer tax credit program?
Your average sales price for all of your transactions in 2010 is:
After the homebuyer tax credit ends on April 30, do you think buyer activity in your marketplace will:
So What Does It Mean?
Almost half of the agent respondents said that the tax credit will impact 0-10% of their buyers, and 58% of the respondents said they thought that buyer activity will stay the same for the balance of the year. While it is certain that the homebuyer tax credit has had some impact to the market, it appears that, at least from a Long Realty agent perspective, that it may not have been the primary driver of business so far this year. Agents feel that the right house at the right price with low mortgage rates are driving buyer activity, and that the tax credit has been a secondary incentive. Which, if true, means that those primary drivers of the housing market remain after April 30, 2010.
.gif)
If you are looking to find out what is happening in housing in Phoenix, download these easy-to-follow reports. Each report shows trends for active listing inventory, closed sales and months of inventory. In addition, view a breakdown of inventory, closed sales and months of inventory by price band, plus a year-over-year summary analysis.
