In the wake of dwindling tax credits of up to $8,000 that ended on April 30 and an end to Federal Reserve bond purchases aimed at lowering home loan rates in March, private sellers of homes are cutting their asking prices again.
Over 20% of the homes on the market by private sellers had their prices cut by a total of $25 billion in April, which was a 1.2 billion increase from March. The discount on the reduced homes averages 10 percent from the original asking price.
The overage of foreclosed properties that have yet to hit the market could further restrict any increases in selling prices, when taken in combination with unemployment rates and the slowly emerging economy in the housing sector.
The average tax credit of $8,000 for first time home buyers, and $6,500 for repeat home buyers, is still in effect for buyers who signed contracts by the April 30 deadline and who will also close by June 30. Though the effect of the ending credit will force home owners to lower their prices in efforts to sell their property, the results of the tax credit expiration won't be visible until the peak home buying season draws to a close in the summer months.
The full article follows below:
http://www.reuters.com/article/idUSTRE64B0MH20100512?type=domesticNews&feedType=RSS&feedName=domesticNews
----------------------------------------
Scotti and Associates are Commercial Real Estate Brokers, Residentail REALTORS, and Appraisers located in Providence RI with comercial and industrial property and homes for sale in Rhode Island and Massachusetts. They are also provide expert real estate appraisals in RI, MA, and throughout New England.
Contact them today at 401-421-8888 or visit them on the web at http://www.ScottiRealEstate.com
No comments:
Post a Comment