What will happen to your real estate sales when the tax credit goes away? I recently posed this question to Tim and Dennis Fish, who sell real estate in Albuquerque NM with Coldwell Banker Legacy. I wondered if home sales would drop drastically, and if so, how would they handle all the Albuquerque homes for sale.
There, as everywhere, the inventory of homes and condos is large, and mortgage companies are tight. Unlike many areas, real estate prices did not escalate wildly during the boom, however the industry is being impacted now, as are the losses and foreclosures that go with it. When the tax credit ends, will prices drop further, creating even more foreclosures?
These three questions have people in the real estate industry buzzing. Tim and Dennis agree the answer to number one may be as simple as "Life goes on". The tax credit was meant to be a stimulus package. It was to help stimulate our economy toward growth. In Albuquerque it seems to have been a successful effort.
"First time homebuyers have been taking advantage of the package well in excess of the previous version," says Dennis, but all good stimulus packages must come to an end."
So, I asked, will the sales take a dump? Tim said no, he doesn't think they will.
"I do expect a change, but not a stop of people buying homes! Sellers will have to become more realistic about pricing their properties, and making sure that their property shows well when placed next to their competition as buyers continue to bargain even more. Price it right and make sure it's cleaned and refreshed", Tim answered me confidently. "It's a price war and a beauty pageant!"
Will home prices drop drastically? Tim's father, Dennis, says they will be impacted, but he doesn't know how much.
"I believe that foreclosures will become the 'Hot item' in our market place" Dennis told me. "The prices are often below the market and there is often the chance to buy at an attractive price and do some rehab yourself and gain instant equity".
I guess we all agree that life will go on and homes will continue to sell. If you are thinking of buying, now is still the time! The types and prices on homes in Albuquerque and elsewhere are better than they've ever been. Search the Albuquerque MLS and you'll see every kind of home and condo imaginable. And if you've been thinking of relocating to New Mexico, look up the Albuquerque Real Estate Group. With the experience and enthusiasm they offer, you'll have a great time finding that perfect home!