A recent report from Deutsche Bank confirms what I have been seeing around my offices lately, while the impact of the first time buyer tax credit is up to debate, there is no doubt that the activity spurred by the credit to date has certainly elevated the mood of my agents, and spurs hope for the future of the market. The Deutsche Bank report concludes "While the actual impact on sales numbers may be relatively light, the impact on consumer psychology, and that second-order impact on the housing market, could be meaningful, and should serve to take a worst-case scenario off the table, at least over the next several months". Economists at Goldman Sachs estimate that with the expanded income limits around 70% of all current homeowners will be eligible for the tax credit and that should actually help to raise home prices over the next few months. In September, existing owners accounted for around 60% of sales, which means that around 42% of all sales last month would have been eligible for the new credit, following Goldman's count, in addition to the 30% of sales that went to first-time buyers. This Week's Real Estate Insight: The housing market is still constrained by unemployment, foreclosures and tighter credit. Serious sellers should grab this opportunity to really make their house shine; the $800,000 cap on homes eligible for the credit will exclude only around 3% of all homes. There are buyers out there, but they need to know that they are getting maximum value. If home sellers are serious about selling, they can take advantage of the psychological impact of the new tax credit. Research the comps in your neighborhood and properly price your house to sell. Clean, de-clutter, and stage it to the max. Make sure you that you choose a Realtor that has a good web presence and that you have quality photographs. Sellers: Seize the Psychological Impact of the New Tax Credit
- By Michael McCann
- Posted
A recent report from Deutsche Bank confirms what I have been seeing around my offices lately, while the impact of the first time buyer tax credit is up to debate, there is no doubt that the activity spurred by the credit to date has certainly elevated the mood of my agents, and spurs hope for the future of the market. The Deutsche Bank report concludes "While the actual impact on sales numbers may be relatively light, the impact on consumer psychology, and that second-order impact on the housing market, could be meaningful, and should serve to take a worst-case scenario off the table, at least over the next several months". Economists at Goldman Sachs estimate that with the expanded income limits around 70% of all current homeowners will be eligible for the tax credit and that should actually help to raise home prices over the next few months. In September, existing owners accounted for around 60% of sales, which means that around 42% of all sales last month would have been eligible for the new credit, following Goldman's count, in addition to the 30% of sales that went to first-time buyers. This Week's Real Estate Insight: The housing market is still constrained by unemployment, foreclosures and tighter credit. Serious sellers should grab this opportunity to really make their house shine; the $800,000 cap on homes eligible for the credit will exclude only around 3% of all homes. There are buyers out there, but they need to know that they are getting maximum value. If home sellers are serious about selling, they can take advantage of the psychological impact of the new tax credit. Research the comps in your neighborhood and properly price your house to sell. Clean, de-clutter, and stage it to the max. Make sure you that you choose a Realtor that has a good web presence and that you have quality photographs. 
