Another deadline. Another struggle to close your home purchases.
On June 30, 2010 the home buyer tax credit will be gone forever. Mortgage lenders and title companies have mounted their final, heroic attempt to close all purchase contracts on homes for sale signed before the April 30 deadline. Many of them won’t make it it. They will loose their $8,000 government handout.
This time the government will not step in. A proposed extension, which was initially approved by the Senate, has been turned down as a part of a larger legislative package. And our leaders made it clear that they won’t pick it up again.
The National Association of Realtors estimates that 180,000 buyers will not be able to close their purchase before the Wednesday deadline. Most blame their lenders for the delays, as they have been swamped with loan applications. I do not believe that this is the real reason.
Columbus OH homes for sale that will not close by June 30, were probably doomed from the beginning. The real culprits are short sales that were not approved by the foreclosing lender, bank owned (REO) properties whose deeds have not been recorded after Sheriff’s sale, and new built homes that just could not get done in 2 months.
These closing problems were predictable. I told my buyers from the beginning that short sales and REOs require a lot of patience and should not be purchased with a strict deadline.
Here’s the good news.
Columbus OH homes for sale really do not need the home buyer tax credit. Unlike many other parts of the country, Columbus homes have sold very well in May, right after the tax credit expired. As a matter of fact, we saw a 30% increase in sales compared to a year earlier.
Many home buyers who missed the April deadline have been better off without the tax credit. They took advantage of price drops that more than made up for the tax credit.
If you follow my posts on www.facebook.com/ohioprettyhomes, you will notice that there’s plenty of good news in the housing sector. Some markets did not fully recover, yet, but great deals are available.
Don’t hesitate to submit your offers on Columbus OH homes for sale right now. Now’s the best time to take advantage of super low interest rates and below market home listings. And the inventory of REOs and HUD homes is better than ever.
If the market heats up – and it will – you will be sad if you don’t follow my advice.
Thanks for reading the susannenovak.com Blog!
Posted by: Susanne Novak, ABR, FIS, GRI
Columbus Real Estate Agent helping First Time Buyers.