The Federal Tax Credit of either $6500 or $8000 was a huge incentive for current owners and new buyers to purchase a home, but what’s going to happen now that the deadline has been met and the tax credit is no longer available? Home buyers had to have been under contract by April 30, and the transaction must be closed by June 30 to receive the tax credit.
Many different opinions have surfaced over the last month as to what is going to happen now with the housing market. A local realtor, Loren Keim, predicts that the excess inventory of homes on the market will keep prices stable as sales start to increase.
Excerpt from morningcall:
Lehigh Valley home sales will increase this year from their anemic pace in 2009, but it will take several years before home values begin appreciating again. There are some 5,000 homes for sale in the Lehigh Valley, and about 500 homes are sold in a good month, which means excess inventory will keep prices in check even as sales increase.
Experts have an optimistic view of the upcoming years with the housing market, encouraging buyers and sellers to continue viewing homes.
The local housing market continues to struggle under the weight of foreclosures and high unemployment. Median prices fell in 2008 and 2009, but have shown signs of stabilizing this year. Population growth will ultimately help the housing market, as friends and family who have doubled up in homes spread back out when they feel more confident about the economy. If interest rates start rising, that could encourage some people to buy as well.
Although sales remain at an all time low, reports show that overtime the housing market will stabilize. Businesses are spending more on new equipment in anticipation of a stronger economy, indicating that we are in an upward trend!
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