Wow! I have read a lot of articles touting some great improvement in the housing market based on April 2010 trends. It is unfortunate because each time I read these articles it doesn't give the whole story. Yesterday, on the radio some economist was remarking that April 2010 was the first time in months that buyers who intended to live in the home outpaced investor sales. Why? What was April 2010? You won't get that tidbit in the lazy journalism read.
April 30th, 2010 was the deadline for the TAX CREDIT folks! To receive the tax credit you have to LIVE in the home. You had to have a signed and official purchase contract on a home by midnight on 4/30/2010 to receive the tax credit. Do you think this would contribute to an uptick in primary home buyers for the month of April?
Now, I don't want to be a Debbie Downer on the housing market. There are some remarkable positives going on. Loan rates are so low that most will be kicking themselves for not buying now when they see rates 6% and higher. Guess what folks, that will happen. Why? Because it has to.....that is another blog subject though.
Another positive? Prices are LOW!!!! Housing is so undervalued right now, it is not even funny. Most people can own a home cheaper than what they pay in rent. Who doesn't want that?
Did I mention the tax breaks associated with owning a home? No, I didn't...but there are some! Just talk to your accountant!
I don't have a problem with positive housing articles, I'm a Realtor. I want positive news on housing! However, I also want you to have a clear and true picture of what is happening in the market. Don't let one month be your guide. All growth needs to be sustainable and not have government intervention. Give us a few quarters of pending home sales and all the great housing news. That will be something to tell all your friends about!