BraySpace

The “What’s Up?” for November

Highlights:

• Tax credit expiration is still playing a major role in decline of sales for late 2010
• Loans are still cheap for buyers
• Since 2008, inventory (homes on the market) has shrunk.  That means demand will go up…..sometime.
• Median sales prices up $1,000 compared to this time last year
• Consumer spending is on the rise

The latest video produced by the Minneapolis Area Association of Realtors

Highlights:

• July was BAD
• Inventory went up (demand went down)
• Median sales price is up (good news)
• Economy is driving housing market when the housing market should be driving the economy

So what should we make of all this?

Yes, July was bad.  Actually, it was beyond bad.  But, what the media has not explained during their barrage of bad news is what this video just did explain.  The tax credit for first time home buyers put the sense of urgency on the table to buy a home before June 30th.  Therefore, all of the people who may have bought in July-December this year ponied up and bought before the expiration of the credit.  That’s where all the buyers are; they already bought.

There have been talks about the government implementing a number of refinance programs and even bringing back the tax credit for first time homebuyers.  Wait…did I just say “bring back the tax credit for first time homebuyers?”  Yes.  Yes I did.  With disgust.  Sorry to those first time homebuyers that didn’t buy before it expired last time.  I know you would love it to come back but this would undoubtedly create an even bigger lack of urgency than the last extension did.  What kind of “incentive” is it if it is always there?  Then it’s just a “right.”  Just to ease some of your minds out there, our brokerage (Roger Fazendin Realtors) is having an OUTSTANDING August.  One of the best months in the last few years.

MAAR hit it right on the head with this video.  The economy is controlling the housing market when it should be the other way around.  Any tax credits that go into place at this point should go to companies that hire new workers.  JOBS.  That’s what we need more of.  An increase in the amount of home sales would be a direct result of more jobs.

Last I checked, it’s impossible to get a mortgage for a home unless you have one of those “job” thingies.

Pass the Tylenol…..We Have A Real Estate Hang-Over

Highlights

• Tax Credit Hang-over
• Typical # of months of inventory is back to normal….yay!
• Increase in median sales price makes us happy

Like all rough hang-overs, only time will tell how long this one could last.  Stay tuned for more updates!