Today a reader asked, “Do you have any thoughts on how the stimulus bill will help home sales due to the tax credit for first time home buyers?”

As long as the banks actively promote the $8000.00 tax credit and the interest rate environment stays stable (where it is), and the downward pressure on “list” prices and high inventories all means that the combination of factors should create a good buying environment. (especially for the first time military buyer).

Confidence is a fleeting thing, and if people can become confident in their immediate future it should portend well for the opening price point housing market. ($175,000 – $275,000).

If confidence wanes then all the tax credits in the world won’t mean much.

Right now, there is a definite pick up in the price range mentioned above. Showings are on the increase as are contracts. The inventory levels for this price range are much lower (approx. 14 – 18 months), then homes priced higher. $300-$400 (25 month inventory), $400-$500 (32 month inventory), $500-$600 (42 month inventory).

Bill Sahadi
Broker/Owner, Fore Properties Realty Inc.
1140 Old U.S. 1 South
Southern Pines, N.C.
28387
www.foreproperties.com
910 638-0888
CRS, Certified Residential Specialist

http://www.4pinehurstrealestate.com/