Comments on: Luster Of First-Time Buyer Credit Is Going To Wear Off http://housingdoom.com/2009/11/23/luster-of-first-time-buyer-credit-is-going-to-wear-off/ "He who defends everything defends nothing." - Frederick the Great Wed, 17 Mar 2010 19:08:22 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: stuffingmonkey http://housingdoom.com/2009/11/23/luster-of-first-time-buyer-credit-is-going-to-wear-off/comment-page-1/#comment-21260 stuffingmonkey Wed, 25 Nov 2009 04:46:57 +0000 http://housingdoom.com/?p=5459#comment-21260 Funny how the real estate fanboys don't say anything about "pent-up demand" anymore, as in all that pent-up demand was shifted forward a few months because of the tax credit. Now that nobody is fooled by the alleged urgency, we are probably looking at a really slow offseason in residential. None of the homes in my MLS portal have moved in months, and they are priced very competitively in the 200-300k bracket. That's aside from all of the factors coming down the pipeline soon like option ARM resets, shadow inventory and higher interest rates. Everyone who bought for the credit are going to look like suckers in the near future unless they got a stellar deal and/or they plan to be there for a decade. Funny how the real estate fanboys don’t say anything about “pent-up demand” anymore, as in all that pent-up demand was shifted forward a few months because of the tax credit. Now that nobody is fooled by the alleged urgency, we are probably looking at a really slow offseason in residential. None of the homes in my MLS portal have moved in months, and they are priced very competitively in the 200-300k bracket.

That’s aside from all of the factors coming down the pipeline soon like option ARM resets, shadow inventory and higher interest rates. Everyone who bought for the credit are going to look like suckers in the near future unless they got a stellar deal and/or they plan to be there for a decade.

]]> By: AZSALUKI http://housingdoom.com/2009/11/23/luster-of-first-time-buyer-credit-is-going-to-wear-off/comment-page-1/#comment-21259 AZSALUKI Tue, 24 Nov 2009 16:14:40 +0000 http://housingdoom.com/?p=5459#comment-21259 gysc, i agree in that, to me, $8000 would not make or break my decision to buy a home. but if you look at the low end of the market that the credit is affecting, it can equate to a year's worth of mortgage payments (on a $100-120K home). so i can see how a young couple that rents a 2 bedroom apartment for $700/mo would find it very attractive. they could get a 3 bedroom house for the same payment...but the entire first year would be free. gysc,

i agree in that, to me, $8000 would not make or break my decision to buy a home. but if you look at the low end of the market that the credit is affecting, it can equate to a year’s worth of mortgage payments (on a $100-120K home). so i can see how a young couple that rents a 2 bedroom apartment for $700/mo would find it very attractive. they could get a 3 bedroom house for the same payment…but the entire first year would be free.

]]> By: GYSC http://housingdoom.com/2009/11/23/luster-of-first-time-buyer-credit-is-going-to-wear-off/comment-page-1/#comment-21257 GYSC Tue, 24 Nov 2009 00:34:37 +0000 http://housingdoom.com/?p=5459#comment-21257 Twist, I agree, now with the extension there will be less aggressive moves on buys. Still, it amazes me that in the purchase of a home in this market that $6-8000 dollars would motivate folks so much. I mean if $8k is that big a deal to you, should you eb buying a house in the first place? Twist,
I agree, now with the extension there will be less aggressive moves on buys. Still, it amazes me that in the purchase of a home in this market that $6-8000 dollars would motivate folks so much. I mean if $8k is that big a deal to you, should you eb buying a house in the first place?

]]> By: arizonaslim http://housingdoom.com/2009/11/23/luster-of-first-time-buyer-credit-is-going-to-wear-off/comment-page-1/#comment-21256 arizonaslim Mon, 23 Nov 2009 16:54:49 +0000 http://housingdoom.com/?p=5459#comment-21256 I just got one of those "Act now!" pitches from a contractor who was bidding on some exterior work on my house. The price was more than I paid a few months ago when I had to have my water line replaced. And the guy said that if I waited to do the work next spring, the price would be 25% higher. Knowing what I do about the contracting business -- it's quite slow these days -- I just let his pitch go in one ear and out the other. I just got one of those “Act now!” pitches from a contractor who was bidding on some exterior work on my house.

The price was more than I paid a few months ago when I had to have my water line replaced. And the guy said that if I waited to do the work next spring, the price would be 25% higher.

Knowing what I do about the contracting business — it’s quite slow these days — I just let his pitch go in one ear and out the other.

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