Thursday, May 13, 2010

With Tax Credit Over, Are Prices Heading Down Again?

Prices finally seemed to stabilize in the first quarter of this year, but one national firm is predicting that the days of price dips aren't behind us. Real estate analytic firm, Core-Logic, is projecting prices to be down 4.2% nationally by February of 2011 due to a shortage of buyers in the market. The under supply of buyers being a direct result of buyers scrambling to get purchase agreements accepted in late April to take advantage of the tax credit. This last minute demand helped temporally stem the tide of the price downturn most markets had been experiencing for the past two years. However, with the elimination of a percentage of buyers from the market in the coming months, this false floor if you will could sink a little bit.

What does this mean for buyers and sellers? Buyers will have some nice deals to consider in the coming months, whereas, sellers will need to be very aggressive with pricing and have a plan.

Here's the full article on the details courtesy of USA Today


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