Post "Tax Credit" Sales Levels
Ask any Realtor and they'd tell you, 2010 was an interesting year in real estate. The 1st half of the year saw a flurry of activity as 1st time home buyers scurried to take advantage of the $8,000 tax credit, and those that could qualify in a buy-up scenario get the $6,500 tax credit. After the June 30th "need to close by" deadline the market dropped off, to a slower, but steady activity level. The interesting thing about it though, in the end, the total amount of closed sales in St Croix County ended up within 10% of 2009 sales totals, when there was a full year of the tax credit available.
With that said, buyer interest/activity in December and January to date have been healthy and above expectations for the time of year, and its my belief that this trend will continue into the spring market. Reasons that support this belief are the market's natural tendancy to correct itself after an artifical stimulus had been injected into it (tax credit), and I believe the consumers are sensing the lessening of inventory levels and up tick in interest rates, which is pushing them to take action before they miss the opportunity to "buy at the bottom."
Although there are many factors in play here, I believe we're poised to turn the corner in the near future, if we haven't started already. Of course, "time will tell" and "hind sight will be 20/20," but the right time for buyers to score the best deal may well be fading fast. Stay tuned.