I asked my LinkedIn community how important first time home buyers were to their (local) real estate market.
Rosemary Joles of San Diego said:
I agree, Rosemary. Two years ago, I warned of the impending collapse of the under $500,000 market in San Diego County. Last year, I thought that market would be robust this year and that the $500,000- $1,000,000 market would suffer due to lack of available financing. As it turns out, I was right both years. I think we'll continue to see "bargains" in the under $500,000 market, well into 2010 and increasing value in the mid-priced homes, as its prices collapse.
Will Handley, a Los Angeles home inspector said:
Amen, Will. The REO market (foreclosed homes being offered by the bank) isn't just healthy for the real estate industry, its healthy for the economy if we intend to battle back from this recession.
John Pucciano, a REALTOR in the DC-area, remarked:
John's correct. The $8,000 tax credit, for people who have not owned a home in the past three years, is akin to federal bribery. Simply put, the Government is willing to give you eight grand if you'll buy a home between now and December 1. I think the problem is that many first time home buyers either:
(a) don't know that the program expires December 1, 2009
(b) don't believe the Government will stop the program.
I can't intelligently speculate about the unpredictable actions of our Government but I do know that its prone to do whatever will garner them votes. Unemployed, unhappy people don't vote for the party in power so take that into account.