My New Blog

The tax credit frenzy is over and ,boy, did it help the Capital District region with home sales. Now, the deadline has passed and now what do we do?

Just like "Cash for Clunkers", the incentive shifted demand to the first quarter of the year. Time sensitive buyers were out there buying up homes which ultimately adjusted upward the price home sellers were getting.

But, the party is not over- ESPECIALLY if you have not yet purchased. Why?

1) Mortgage rates are low. A 30 year fixed rate loan is now under 5%. With rates bouncing back and forth from 5 to 5.625%, a loan under 5 % is highly attractive. Just saving .375% on a loan can save you $45.00/month on a $200,000 loan amount. Thats $540.00/year!

2) Inventory of homes is high. People still have to sell their homes and with the mass frenzy of buyers having come and gone, those that are in the market now are seeing homes with out the competition that was of months past. Yes, good homes priced right, sell fast and that will ALWAYS be the case but less competition for the same home with fewer buyers puts you in the drivers seat.

For the complete facts, take a look at this short video

Capital District Skinny for May 2010