Tax Credit is Over, Are Buyers Still Shopping?

People often ask me if the increased real estate market activity we have seen in the past year would continue after culmination of the tax credit on April 30th.  If a buyer was not in contract by that date, they would no longer qualify for the $8,000 maximum tax credit.

There was a huge rush and incredible frenzy of buyers during the month of April to hurry and find their tax credit dream home.  We saw bidding wars and buyers agreeing to pay over the appraised value for a home.  We all know appraisals can be tough these days, and that is a subject for another posting.

This graph (red line) shows the past year of pending sales in Miami-Dade County for properties under $400,000. As you can see, pending sales have shot up during the past few months. This was the end of the tax credit.

I have a few buyers of my own who were not able to settle on their perfect home prior to April 30th, but they haven't stopped looking just because the tax credit ended.  My feeling is that the tax credit was beneficial for the economy.  It did stimulate the activity we needed to jump start the market and help stabalize prices. Now that it is over, I am still seeing buyer activity, and more "normal market" activity.  Time will tell how by mid to late summer how many people took advantage of the tax credit.