I was interviewed by CBS 11 last week as part of a story on the recent decline in the real estate market. While part of it is cyclical, I believe that some of it is a rebound effect from the Federal Tax Credit which ended in April 2010. The tax credit created a lot of activity but I argue most of it was accelerated buying rather than new buyers entering the market. I dubbed it, "Cash for Clunkers Comes to the Housing Market."
For the past couple of weeks, there has been an increase in website hits and inquiries, but it had yet to translate into showings. After several weeks of little showing activity and despite temperatures over 100 degrees, we finally started to see some life come back into the local real estate market.
With interest rates at historical lows this may be the best time to purchase a home as either a primary residence or as an income producing investment. The "perfect storm" of low prices and low interest rates will not last forever any more than the crazy run-up in prices and lax mortgage lending practices that took us here.
Photo Credit - Tom Branch
Tom Branch and Gina Branch, The Branch Team with RE/MAX Dallas Suburbs, service the greater North Dallas suburbs including Dallas, Plano, Allen, McKinney, Frisco, Lewisville, and Carrollton. While Gina concentrates on traditional listings and buyer/tenant representation, Tom specializes in assisting distressed homeowners to avoid foreclosure. Tom and Gina have published two books (Achieving Rock Star Status and The Field Guide to Short Sales) and are available for speaking engagements in the greater Dallas - Fort Worth Metroplex. Subscribe to The Branch Team Blog.
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Tom, if the market is left alone, we'll finally get a feel of what the market is going to do. I think with low interest rates, buyers will be crazy not to take advantage and purchase now.
That is great news, and I hope it's an indicator for the whole U.S.
Tom, we had a very slow June also, and we also feel business is picking up in July, let's hope this will last a bit longer than just the rest of the summer.