With the New Year and the Spring/Summer Real Estate market around the corner, everyone is looking to see if this is the year of the return to a more normal market. We can be cautiously optimistic but a few recent items in the news could spell changes in the market come April and May:
- Extended Tax Credit – many buyers are coming out of the woodwork for the New year hoping to buy a propert yand take advantage of the expanded tax credit that expires April 30th. How many of these buyers may decide to take a step back once they can no longer get money from Uncle Sam?
- Short Sale reform coming April 5th – the Home Affordable Foreclosure Alternatives Program (HAFA) is a move by the government to try and make short sales more efficient and give them a better public perception. However, as Dean Ouellette and Sarah Stelmok are currently posting, this program in many instances could be not in the best interest of the homeowner and/or lender.
- Changes in FHA Financing – as reported on VARBuzz FHA guidelines are changing later this year. Since for many buyers FHA is their most cost effective mortgage option, will the higher initial MIP and reduced seller concession squeeze many buyers out of the market?
We have seen many changes in th housing market so what happens when and if the “training wheels” currently in place come off?