With 33 days left to qualify for the first time homebuyer tax credit we’re going to see a rush of pending sales. While some buyers are patiently looking for just the right home, many people will be increasing their activity in their search to find a place and get the tax credit.
One of the big questions is what will happen to the market once the credit is over. I expect sales to slow down and we might see prices in the first time buyer range of around $200,000 soften slightly. The risk people take in waiting is that if prices ebb slightly but interest rates climb you could end up paying more every month even if the house is purchased for less money.
I think right now is a huge opportunity time, especially for first time buyers and investors.