The lazy days of summer may be here, but the real estate industry is busier than ever. The National Association of Realtors (NAR) estimated that a million homes were sold due to the Tax Credit extension this past spring.
With the spring rush, real estate sales professionals, title service providers, and mortgage brokers have worked overtime to ensure those homebuyers not only found their dream home, but closed in time to meet the June 30 closing deadline.
In a recent release, NAR Chief Economist Lawrence Yun, estimated that 180,000 home buyers would miss out on the credit for not closing in time.
Industry movers and shakers have supported legislation to extend the closing date to allow those buyers to get through the title log jam. At the eleventh hour the Senate passed a House bill bringing much relief to those buyers who were under contract by April 30, by allowing them an extra 90 days to close their home purchase.
The proposal will not have a significant impact on future home sales, but will significantly help those 180,000 homebuyers scrambling to achieve their homeownership dreams.
For homebuyers who didn't take advantage of the tax credit, the time is still ripe for those who want to purchase a home. Interest rates are still holding at all-time record lows providing homebuyers an opportunity to get in the market.
It has been speculated by industry watchers that interest rates will climb in the near future as the economy recovers. Even the slightest bump in interest rates can price a buyer out of their dream home. The key message here is don't wait, or you could miss your opportunity.
Inventory is still plentiful as well. Home sellers who missed the early spring rush aren't necessarily making a mistake by putting their home on the market now. Over the past few years, the buying season trend has extended into the summer months as new home buyers want to ensure they are moved in to their new home before school starts in September. Look to the graphs to review the inventory trends in your area.
Home prices have also stabilized in many areas of the country ensuring more affordable housing. The mind set now is that a property isn't just an investment, it is a home. It is a place to call your very own.
Overall, there are opportunities to be had, and not to be missed.
For more information about real estate trends in your community, please contact me.
