Friday, April 30, 2010

Survey: Buyers optomistic after April 30th first time buyers tax credit deadline. Are you?

Buyers still smelling the flowers...

Many of our Chicago clients (buyers and sellers) have been asking for some time now what affect expiring first time buyers tax credit will have on the real estate market. Will prices go down? We can't say, but Bob and I estimate that the under $350,000 priced properties near the downtown center will slow down in demand ( for example South Loop to Rogers Park with Lincoln Park, Lakeview, Lincoln Square, River North, etc... being key neighborhoods). However, pricing for well constructed, nicely appointed and nicely located properties in our opinion will remain fairly flat with already closed comparable properties from this year.

A Prudential Real Estate and Relocation Services, Inc. survey finds Americans are optimistic about buying real estate and are somewhat confident values will go up in the next several years. The expiration of the federal first time buyers tax credit today was low on buyers' concerns. As usual, mortgage interest rates and jobs are the major variables on peoples minds when deciding to buy. From the survey:

"The expiration of the 2010 Home Buyer Tax
Credits on April 30 is unlikely to put off Americans looking to
purchase homes who believe now is a good time to buy and are confident
that home prices will rise according to a survey released by
Prudential Real Estate and Relocation Services, Inc., a Prudential
Financial, Inc. company. The survey of 1,000 Americans between the
ages of 25-64 with at least $35,000 household income was conducted
during April 15-20, 2010."

Read the story HERE

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