How will the $6500 tax credit Tip the market?

Posted on November 10th, 2009 in All Articles, Lincoln Square/Rosoce Village/North Ctr, Market Conditions, Other Real Estate.
  • Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
  • Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.

Recently looking at 35 homes in the $1.1 range through the Roscoe village, North Center and Lincoln Square n’hood I definately witness a pickup in the market. 4 homes that my client and I viewed within 3 weeks had gone under contract.

With a market of 17 months of inventory you would think that shelf life was longer.

But in calling agent back that saw offers and contract the word on the street was that the first time buyer tax credit buyer hit the streets in the early fall and contracts ensued…. thus pushing the mid range property owner out of their home/smaller condos and into the field for the higher priced homes.

Two people have a condo, have two children and live in a condo and haven’t been able to sell–and now can sell. They go buy a house.

Now think about how much more the market will tip with the second component of this extra extension we all lobbied so hard for…

-Phil Buoscio