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Looking at the Effect of the Federal Tax Credits on Market Conditions

Published On: April 14, 2010

The Views expressed here are the opinion and only the opinion of the Designated Broker Tom Peterlin. Any informaton gathered and provided from resources such as the Arizona MLS is considered to be approximate in nature. It is strongly recommeded that Buyer & Buyer's agent and Seller & Seller's agent verify any and all information presented in this format.

Perhaps, a noticeable change took place the first week in March 2010 as far as increased buyer activity in the residential resale market in the greater Phoenix area. It became apparent that buyers, especially first time buyers, were excerising their right to purchase residential property to take advantage of the up to $8000 Federal first time homebuyers tax credit. It is a common view in the real estate community that first time homebuyers push the real estate market "up". In terms of market forces, it produces a bottom up effect which has a ripple effect on step up homeowners who wish to sell their homes and either step up or down size their principle residence property.

In addition, there seems to be mounting evidence that the more affluent buyers are also coming out of the woodwork to sell their existing properties and relocate to another property. It seems to be for a variety of reasons including but not limited to downsizing because they are empty nesters; expanding households with either newborns or older family members such as parents moving in with their children because of the challenging economic climate. These and a varity of other motivations are causing a significant pull on the current real estate market.

No doubt there are still neighborhoods, price points, and types of residences that are still looking to find footing in this residential real estate market. But for now, it is safe to say that there is a definitely movement in the residential market that we haven't exeperienced for some time.

Let's hope it continues.

Please call me at 480-703-1414 or email me back at tom@c21seago.com  with comments or to request more information.

Best wishes,

Tom Peterlin

Century 21 Seago, Inc