It is interesting to see article after article suggesting that the end of the tax credit will be the end of the warming real estate market in Northern Virginia.
Since the winter is normally the slow time for home sales, the fact that the tax credit ends at the same time seems to be suggesting a cause and effect that may not exist.
Certainly the tax credit has helped some buyers to move forward on a home purchases over the last few months but was it the primary reason for a first time buyer to put pen to paper?
How about prices that are back to a point where more buyers qualify for a loan?
What about interest rates that are at “historic lows?”
What about sellers who are willing to assist buyers with closing costs helping them keep money in their pockets?
Not everyone buying a home in Northern Virginia is a first time buyer. There are plenty of buyers across the market who don’t qualify for the $8000 tax credit who are buying homes.
It is to bad that the end of the credit is coming just before the holiday season. I can see the headlines now calling December and January the “darkest months for home sales in Northern Virginia history” or something similiar.
Lets see what happens in Q2 2010 if there isn’t another new incentive in place before we say that the tax credit was the only reason we had an upswing in home sales in 2009.