Tony and Suzanne Marriott's Phoenix Arizona Real Estate Blog

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Results In: Homebuyer Tax Credit Ending Slows New Contracts

The proof is in the pudding....

It has now been a month since the end of the Homebuyer Tax Credit and many of us are wondering how the market will react. For long-time readers of the Tallahassee Real Estate Blog, you know that I have predicted slower home sales, falling home values, but a rise in the “average” home price.

On February 17th, 2009, the American Recovery & Reinvestment Act 2009 was passed, which included a new, temporary tax credit as an incentive for first-time homebuyers. With this bill, first-time homebuyers could qualify for up to $8,000 in a tax credit for the purchase of a principal residence. The credit would cover the time frame of January 1, 2009 through December 1, 2009.

Later, it was determined that the housing stimulus was not so stimulating, so in November of 2009, the credit was expanded and extended. Now, the Homebuyer Tax Credit would include some existing homeowners plus first time homeowners in more price ranges if they were to buy a home prior to June 30, 2010 (but be under contract to buy one no later than April 30, 2010).

Examining The Results Of The Homebuyer Tax Credit Ending

The first place that we expect to see any changes due to the ending of the Homebuyer Tax Credit would be in the Pending Home Sales Report. This report measures the one-year trend of new purchase agreements, so any non-seasonal change in buyer activity would first be identified with this report.

Real Estate Graph Pending Home Sales Report In Tallahassee  Florida

In the real estate graph above, it appears as if we are seeing a reduction in the number of new real estate purchase agreements since the end of the Homebuyer Tax Credit. The yellow vertical line marks the April 30, 2010 deadline for new contracts to qualify for the stimulus, and it appears as if the market really has noticed.

The next place that we will see the effects of the ending of the housing credit will be in the new closed sales reports, but these changing results should not begin until the first week of July. The following graph shows that new real estate closings are still on the rise.


Time will tell, but the early indications are for a slowing in the housing market recovery. We should monitor local economic conditions, jobs, and unemployment to better project the future following the end of the Housing Tax Credit.

Reader Feedback And Opinions Requested

What do you see happening in the next six months in our market? Will the end of the housing credit be a minor blip, or something that will be remembered for a very long time? Will falling home equity levels restrict existing home owners in their future moves?  Will the strengthening economy bring needed relief to the housing market? What about foreclosures and short sales, will additional distressed property inventories have a major impact on our market? Let us know in the comments section of our blog.

About the Authors - Updated 2018

If you are considering a Traditional or Short Sale of your home in Phoenix, Scottsdale or any location in Maricopa County Arizona, you owe it to yourself to talk with the BVO Luxury Group @ Keller Williams Arizona Realty to determine whether Tony and Suzanne Marriott are the best real estate Brokers in the Phoenix and Scottsdale metropolitan area to help you with the Successful Sale of your home.

Tony and Suzanne have personally Listed, Sold and Closed more than a hundred Short Sales with the highest list to close rate in the Phoenix Metro Area!

Tony Marriott - Chief Operating Officer - BVO Luxury Group @ Keller Williams Arizona Realty

Suzanne Marriott - Chief Learning Officer - BVO Luxury Group @ Keller Williams Arizona Realty

Associate Brokers, REALTORS
BVO Luxury Group
Keller Williams Arizona Realty

Comments

This is true to an extent, there will always be people that want to or have to move, the credit was a motivating factor but not the only one.

 

Posted by Andrew Monaghan, CRS, GRI, EPro Associate Broker (The Monaghan Group) about 9 years ago

Andrew I was remiss in the early days - just now catching up with comments from blog posts since day 1 - thanks for the comment - hope you are still in the 'Rain!  

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) almost 4 years ago

Enjoyed this post and want to read more - try this one - Peacocks and Pickles for Christmas 2015!  Wishing you a prosperous and Happy New Year!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 3 years ago

Enjoyed this post and want to read more - visit our website  - HavenExpress.com - where all your questions about buying and selling residential real estate in Arizona are addressed!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 3 years ago

Enjoyed this post and want to read more - visit our website  - HavenExpress.com - where all your questions about buying and selling residential real estate in Arizona are addressed!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 3 years ago

Enjoyed this post and want to read more - visit our website  - HavenExpress.com - where all your questions about buying and selling residential real estate in Arizona are addressed!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 3 years ago

Enjoyed this post and want to read more - visit our website  - HavenExpress.com - where all your questions about buying and selling residential real estate in Arizona are addressed!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 3 years ago

Enjoyed this post and want to read more - visit our website  - HavenExpress.com - where all your questions about buying and selling residential real estate in Arizona are addressed!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 3 years ago

Planning to sell your home in Scottsdale, Arizona?  Give us a call for a free, no obligation, consultation!  Haven Express

Listed, Sold and Closed 100% of listings taken (dozens of them) since June 2011!

Real Estate.  It's What We Do. Best!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) about 3 years ago

Planning to sell your home in Scottsdale, Arizona?  Give us a call for a free, no obligation, consultation!  Haven Express

Listed, Sold and Closed 100% of listings taken (dozens of them) since June 2011!

Real Estate.  It's What We Do. Best!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) about 3 years ago

Planning to sell your home in Scottsdale, Arizona?  Give us a call for a free, no obligation, consultation!  Haven Express

Listed, Sold and Closed 100% of listings taken (dozens of them) since June 2011!

Real Estate.  It's What We Do. Best!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) about 3 years ago

Planning to sell your home in Scottsdale, Arizona?  Give us a call for a free, no obligation, consultation!  Haven Express

Listed, Sold and Closed 100% of listings taken (dozens of them) since June 2011!

Real Estate.  It's What We Do. Best!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) about 3 years ago

Planning to sell your home in Scottsdale, Arizona?  Give us a call for a free, no obligation, consultation!  Haven Express

Listed, Sold and Closed 100% of listings taken (dozens of them) since June 2011!

Real Estate.  It's What We Do. Best!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) about 3 years ago

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