For a 4th month in a row, buyer showings are substantially slower than last year at this time, though each month’s buyer activity is very slowly improving versus last year. The tax credit hangover has certainly been severe! Historically showing activity slows substantially in September but last year we saw a strong September and October due to the previous tax credit expiration. Many of the agents in my office (myself included) feel like buyer activity has improved some in the last few weeks but until we see that activity show up in showings and Pending Sales it will be tough to say buyer activity is coming back.
While there are murmurs of a new home tax credit being discussed, those murmurs have largely been dismissed as not significant. Another tax credit won’t help housing – more jobs will. For those out there looking to buy, inventory has increased a little bit and interest rates have dived to 4.25% or so on a 30yr. fixed rate mortgage. There’s a lot of good homes to pick from and this time of year buyers do have more leverage.
