Posted to: First Time Home Buyers

So Much for the Move-Up Tax Credit

There is so much mixed feelings about the market right now.  In the Berkeley and surrounding areas, one street is seeing multiple offers and the next isn’t.  The number of foreclosures has gone down drastically, although most buyers think there are buckets of bank-owned homes ready to come on the market.  I don’t think this is the case.

No wonder buyers and sellers are confused.

While most houses are moving fast, it certainly isn’t because of the move-up tax credit.  It doesn’t surprise me that this flopped.  The move up tax credit of $6500 is for those who have lived in their home for five consecutive years out of the last eight years.  Whenever I meet with a new seller I mention the tax credit- I have yet to see one seller get excited about this and sell because of it. 

Enthusiasm for the credit is waning. 

The first time homebuyer tax credit is set to expire at the end of April so I imagine we will see a spike in sales over the first quarter.  However, most buyers are prepared to buy with or without the credit.  Perhaps it is because inventory is so low that there just isn’t much to choose from. 

Regardless of the reason, the credit was a good attempt at stimulting the real estate market.  I know plenty who took advantage.  Let’s keep watching to see what happens with rates.