Charlotte Real Estate Market Update for October 2009
There has been a wave of first time home buyers trying to take advantage of the $8,000 tax credit. It seems that most of the activity was in the $250,000 and under price range. The first time home buyers have slowed significantly as most of the anxious buyers have already entered into a contract in hopes of closing the house by November 30th. This will be harder for buyers who are trying to obtain a FHA loan because the underwriting process is more stringent.
The last couple weeks we have been noticing more buyers starting to dabble in the higher price ranges (600's and below). Hopefully this is an indicator that home prices are starting to near the bottom at the higher price ranges. I blogged a couple weeks ago about how I feel that we have already hit a bottom in houses priced at $250,000 and below.
Investors are starting to reenter the market. They are being picky about where they invest but are out there looking for good deals...especially short sales and REO's.
It sounds like the tax credit is going to be renewed. The last I heard they wanted to offer a tax credit equal to 10% of the purchase price, up to $7,290, for first time home buyers. I have also heard that the government was going to offer an incentive for home owners who have lived in their current house for 5 or more years. If these home owners decided to buy new construction they were going to receive a $6,500 incentive.
More to come once the Senate as ironed out all of the details.