If you haven’t signed that contract, don’t get your hopes up. However, if you signed a contract before April 30, 2010 and haven’t managed to close by the July 1 deadline, there still is hope. Congress has passed an homebuyer credit extension for people who had signed contracts in place before April 30 to now close before September 30 and still get the credit. It is now waiting on President Obama’s signature.
Since the expiration of the Homebuyer Credit at the end of April, home sales have dropped a whopping 33%; just one of the possible reasons the homebuyer credit extension was offered. Many homebuyers rushed to purchase in April before the credit expired, leaving a dry spell in May mixed with an injection of new inventory based on the optimism in the market created by the April rush. With an increase in inventory and drop in new buyers, realtors, home builders, and sellers are now feeling the pain of the credit’s expiration.
However, the expiration of the tax credit and significant drop in housing prices could be good for investors, first time homebuyers who missed the credit, and those seeking a second home. While this continues to be a difficult time for builders, contractors and realtors, the expiration of the Homebuyer Credit may allow the market to finally correct itself and begin to make a come back. Without intervention, buyers know these rock bottom prices won’t last forever. A combination of bargain buyers and reductions in inventory production could have home prices back on the rise in the not too distant future. Lets all hope sooner rather than later!