Rush to Get Home Purchase Contracts in before Tax Credit Expires

It's been a wild week in real estate here in Richmond as buyers rush to find a home to buy before the federal tax credit expires. The deadline for contract to be finalized is April 30th leaving just seven days to act.

For those you coming out of a coma. The federal government is granting an $8,000 refundable income tax credit for first time buyers (and those who haven't owned in the past three years) and $6,500 for move-up buyer as part of the stimulus package.

I think some people falsely thought or were hoping for a second extension of this program. This highly unlikely to happen (though I would love to be proven wrong on this point). So this is probably the last train out for such great program.

The tax credit has been a real bright spot on an otherwise gloomy real estate market. It is great to have a least one government program that works and puts money back into regular folks pockets and back out into the local economy. Lots of economic activity accompanies every single home sale with ancillary purchases of furniture, appliances, do-it-yourself home project supplies, movers, mortgages, title companies, realtors, utilities, inspectors, contractors, interior designers, florists, insurers, the list goes on.

The housing sector in a major engine of the economy on both a macro and micro level, so get out there and do your patriotic duty to spur on the economy! So much for my soapbox. I do feel that I am doing my part. I just set two appoinments to show my Fan listings while writing this submission. One of those agents said he was showing twelve different condos today - Whew!

Anyway the real test is to see what happens after the credit expires. We are hoping things just get back to a normal pace in the market. We are still in a great environment for puchases with interest rates just above five percent as of yesterday and an a market where sellers are willing to help out with the buyer's closing costs. Also there are some great deals on foreclosed properties. The banks that own these are very competitive in the market and a good number are in decent condition.

Well, I better get back to work. I just got another request to show a listing a 4:00 pm. It great to have a rush. Keep it coming...