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The Buyer’s Tax Credit is Over…Now What?

The numbers look pretty good when we take a look at April Maricopa County pendings and solds. But I think the real truth of which way our market is moving might be told over the NEXT few months.

Buyers had to have their contract in place by April 30, 2010 and the transaction must be closed by the last day of June to receive the tax credit. It was not uncommon for homes in lower price ranges to get literally dozens of offers over the last couple of months. Buyer’s had a lot of competition.

This frenzy caused a decrease in the number of active listings. In turn, this should make traditional sellers (not bank owned or short sale listings) feel a bit better about the competition…but I would still suggest they price their homes very competitively as the banks still have many homes in the pipeline which will eventually be coming on to the market.

Sellers need to understand that the numbers are the numbers. Overall, we have seen almost a FIFTY PERCENT drop in the average sales price since May of 2007. Will the absence of buyer tax incentives cause the prices to further decrease? Will the days on the market increase from the 100 day average we are seeing now? We can only keep a watchful eye on the market and stay tuned!

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