Katy Real Estate: Is the Feeding Frenzy Over?

I’ve had the busiest spring of my 21-year real estate career! As the April 30th deadline to qualify for the tax credits, $8,000 for first-time home buyers and $6,500 for existing home owners, loomed, home sales got really crazy.

It was not unusual for brand new listings to have multiple offers. Bidding wars ensued. Here in Katy, particularly on the southside of I-10, it was impossible to believe that a real estate recession exists.

Nationwide, the tax credit bills created a strong upswing in home sales.  According to the National Association of Realtors, pending home sales increased again in March 2010, affirming that a surge of home sales is unfolding for the spring home buying season.

Lawrence Yun, NAR chief economist, said favorable affordability conditions have been working with the tax credit. “Clearly the home buyer tax credit has helped stabilize the market. In the months immediately following the expiration of the tax credit, we expect measurably lower sales,” he said. “Later in the second half of the year, and into 2011, home sales will likely become self-sustaining if the economy can add jobs at a respectable pace, and from a return of buyer demand as they see home values stabilizing.”

Yun continued, “Another encouraging sign is the improvement in the availability for jumbo and second-home mortgages. As bank balance sheets strengthen, it is just a matter of time before lending of non-government-backed mortgages steadily opens up.”

Visiting with co-workers this first week post-tax credit, business does not seem to have slowed down. Not a bit!