Tampa Bay Realtors fear thankless Thanksgiving

Here are results from a Tampa Bay Realtor survey contained a larger national report from Credit Suisse:

Agents said that a poor economic outlook and the upcoming expiration of the $8,000 tax credit contributed to the October slowdown. One agent said, “Unemployment and low consumer confidence,” were responsible for the low traffic levels. Another noted that, “The $8,000 tax credit time limit,” to close on a home before Nov. 30th caused buyers to remain on the sidelines, as buyers who signed a contract in October had limited time to complete the closing process by the credit’s deadline. Yet, despite this timing issue, some agents saw a last minute rush of buyers trying to sign and close on a home to be eligible for the tax credit. This may create a greater potential slowdown for November, as traffic, which may not have existed in October without the credit, is pulled forward, leaving a void in November.

The full report is here: Download Creditsuisse. It talks Tampa turkey on page 25. 

Comments

[Fuzzy Bear]

“The $8,000 tax credit time limit,”

We will soon find out if the extension of the tax credit for the next 5.5 months will be enough time to make a difference.

The problem is short sales take an average of 6-7 months depending on the bank and if there is a second lien holder. With the extension of the tax credit until the end of April, 2010, that may not be enough time.

[David]

Another reason I'm going to wait a little longer.

http://www.cnbc.com//id/33834317

[Fuzzy Bear]

"Another reason I'm going to wait a little longer."

The majority of those modifications were stated income loans or what is often called liar loans. I recently did some research in the Tampa Bay area on foreclosed properties and found the majority were realtor/investor owned.

Out of over 200 reviewed, the majority needed considerable work done as they were in very poor shape and not move in ready. So, if you are looking for a short sale or foreclosed property that is in good shape, move quickly as these are the properties being bought. Otherwise, the properties in poor shape will be the only ones available by the second half of 2010. Then again, it is predection is that only 5% of those qualified to purchase will be purchasing a property next year.