First time homebuyers are energizing the local market with a 11/30/09 deadline to close their transaction and qualify for a $8,000 tax credit. Pending transactions were up nearly 50% over a year ago and builders are creating more inventory in the $300k and less price range. At the same time inventory levels for resales were below 2008 levels and have created "bidding wars" on moderate priced homes as well as short sale and bank owned properties. Interest rates are starting to rise and are expected to approach 6% near year end adding more urgency to the market place. There are mixed opinions for market improvement if the existing tax credit is not extended. Real estate has a "trickle-up" effect and first time homebuyers ared deemed critical for any long term recovery.
