The Post-Credit Era
We’ve been saying for the past month or so that we’re not particularly worried about the end of the federal homebuyers tax credits. We also weren’t particularly concerned when the Federal Reserve said it would cease purchasing mortgage-backed securities. After all, the only way to discover if a market is truly healthy and viable is to stop subsidizing it.
It’s still early to render a verdict, but so far so good. People recognize that the combination of low rates and lower home prices represent a great opportunity, while many shoppers who failed to find a home to qualify for the tax credit remain undeterred and, just as important, rational – understanding the go-go days of the early 2000s are over. And that’s a good thing. The market of that era was driven more by speculation and less by fundamentals. And though it was highly remunerative for many of us, we see how it turned out.
In housing, slow and steady wins the race, which is why we continue to advise our clients that today’s market offers good fundamentally sound deals that can be financed at good economically advantageous interest rates. Sounds like a win-win deal to us.
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3 Responses to “The Post-Credit Era”
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It does seem as though the market is fairing just fine – there is a lot of activity.
Thanks again Dean!
There are lots of people in the marketplace now who agree with you and are buying a home for not only shelter but security and being a great long term investment.
Brian
Brian
Dean,
I was saying to myself the same thing. Looks like the market is still strong. The interest rate concern is definetley over. With the state credit maybe it will bring us to a smooth landing. I also look forward to letting the market not being artifically inflated.