Finance and Commerce: Tax Credit Post-Mortem

by Alex Stenback on May 6, 2010

The indispensable Finance and Commerce has up a nice recap of how last week’s tax credit expiration deadline unfolded, and a look at what to expect from the market now that the real estate market has had another leg of government support kicked from under it:

Alex Stenback, a mortgage banker at Residential Mortgage Group in Minnetonka, agreed. “People buy homes because the circumstances in their life make that an attractive option,” he said. “The tax credits are a nice bonus, for sure, and pull some sales forward in time.  I’d expect there to be a slight hangover effect as the expiration date probably cleared most active, serious buyers. 

“But there will be new buyers and those that could not find a suitable property before the 30th will remain in the marketplace,” Stenback continued. “So I’d expect total sales for the year to continue apace.”

Stenback added, “Affordability is still high, and interest rates remain rock-bottom. We can’t discount the motivational impact of those things either.”

Yes.  I just quoted myself being quoted – the ultimate in navel-gazing.

Minnesota Housing Sales Gathered Steam [Finance and Commerce]

{ 1 comment… read it below or add one }

Laura Morton May 9, 2010 at 11:56 pm

We expect rates to remain low for the rest of the year. The so-called shadow inventory is still unaccounted for. There is no consensus on the amount of houses. And lenders are still exercising caution. They are lending, however they are cherry picking. The borrower needs a great credit score, a downpayment and a stable job.

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