Of course there will! We have no plans to close the office Monday. The $8,000 first-time-buyer credit and $6,500 repeat-buyer credit end today. The exception is if you’re military you can get up to an additional year (I’m all for this, in fact would like to see it made permanent!).
I know the tax credit has been an incentive for first time buyers for over a year now and I suppose it’s helped somewhat to prime a sagging market. Personally I’ve seen little effect from the $6,500 existing home buyer. I thought this would spur on quite a bit of activity, but I really haven’t heard any buzz about it at all. I’ve mentioned it to a few buyer’s when applicable and most weren’t aware of it and didn’t really get all that excited about it.
Come Monday, there’ll still be first time buyers. People will be transferred. Couples will get married. Couples will get divorced. Families will grow. There will still be people needing housing and will be buying homes.
People tend to be illogical. What’s getting ready to happen is interest rates will begin rising. Along with that home prices will begin rising. That’s the point where people tend to panic and feel they’ve missed the boat and will buy. Buying high and selling low is a panic move.
I feel it almost goes without saying the the $8,000 is a check the government cannot afford to write at this point. We simply have to cut expenses and I’ve never felt this was a wise investment for the country. The housing market could simply recover on its’ own as it has done. Goodbye tax credit — R.I.P.