8K Tax Credit

**Rick Hurst** · 07-21-2010, 12:34 PM

Real Estate has overall slowed down since the end of the so-called tax credit.

I don't understand why people were so fixated on a few thousand dollars of tax incentive. Don't they understand how much money 4% interest is going to save them?

Go figure.

rick

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**Scott Patterson** · 07-21-2010, 12:46 PM

Originally Posted by Rick Hurst

Real Estate has overall slowed down since the end of the so-called tax credit.

I don't understand why people were so fixated on a few thousand dollars of tax incentive. Don't they understand how much money 4% interest is going to save them?

Go figure.

rick

I agree it is really funny how folks think!

**Nick Ostrowski** · 07-21-2010, 01:15 PM

And it isn't like they saved that money up front. They still needed to come up with the cash at settlement. I think some buyers decided to drop out of the market after they missed the deadline and are hoping for a 3rd extension of the credit.

Ted Menelly · 07-21-2010, 01:30 PM

Originally Posted by Rick Hurst

Real Estate has overall slowed down since the end of the so-called tax credit.

I don't understand why people were so fixated on a few thousand dollars of tax incentive. Don't they understand how much money 4% interest is going to save them?

Go figure.

rick

Yes it has slowed down. A call on an almost 100 year old home (of course, crawl space) that adds up to, garage included, about 3200 sf and the folks already got a couple quotes for 250. Can you say all day project with the report. I could do an 8000 sf home in the same time if not less.

Ron Bibler · 07-21-2010, 01:38 PM

People out west are just not sure where they are. they know that taxes are going up next year. the job market is very slow. and extra money is just not to be found. So 8K is alot. Most of the homes selling out west are
under 350K I know that sounds like alot but not out in Calif.

Best

Ron

**Jim Luttrall** · 07-21-2010, 05:39 PM

I may be wrong, I was once before, but I am seeing a GRADDUUAALLL up-tick in business.
It is my theory that the tax credit just moved what buyers that were on the fence into jumping into the market before the credit expired and now we are just coming out of a dead spot created by pushing the sales earlier in the year.
Kind of like the Cash For Clunkers on car sales last fall. Sales really jumped during the incentive but the next few months were dead because most of the people in the market jumped in earlier to take advantage of the limited time credit.

My thought is to get rid of the stimulus and the massive spending and the enormous fear of higher taxes to come. Just let things settle and get back to a normal business cycle.

Ted Menelly · 07-21-2010, 06:48 PM

Originally Posted by Jim Luttrall

I may be wrong, I was once before, but I am seeing a GRADDUUAALLL up-tick in business.
It is my theory that the tax credit just moved what buyers that were on the fence into jumping into the market before the credit expired and now we are just coming out of a dead spot created by pushing the sales earlier in the year.
Kind of like the Cash For Clunkers on car sales last fall. Sales really jumped during the incentive but the next few months were dead because most of the people in the market jumped in earlier to take advantage of the limited time credit.

My thought is to get rid of the stimulus and the massive spending and the enormous fear of higher taxes to come. Just let things settle and get back to a normal business cycle.

One Monday, one Tuesday and one Friday so far. All of those came about from last week. A couple of crazy calls and that's it for this week. I creeped up a little for me and then set back down again. I do kind of fear this coming late fall and winter. Lets pray to Buddha (relax, just being cute) for a profitable time until then to be able to sneak though the slow season.

I think Rick has about 30 a week coming that he is going to divvy up between us.

**Matt Fellman** · 07-21-2010, 07:18 PM

Great..... I'm screwed

If you Texas guys are slow I don't have a prayer. From all statistical accounts, Texas is one of the least impacted states in the current housing debocle. Oregon is just getting killed. Our pending sales are running at about 1500 a month here in the Portland area. Historically, that's about the norm for a December with a snow storm that wipes out half the month.

We saw a sharp decline after the credit but generally clipped along through May and much of June. The last month has been steadily declining to the point we are at now. I was busier my first year doing this than I am right now.

**Nick Ostrowski** · 07-21-2010, 08:15 PM

It's feeling like the summer of 2008 all over again.

**Brandon Whitmore** · 07-21-2010, 10:50 PM

Matt,

That's not good. The last two weeks, I've been slammed, and have several waiting for me next week (5 I think). I was hoping that it was a sign of good things to come, but now I'm thinking I've been lucky.

Ted Menelly · 07-22-2010, 09:01 AM

Originally Posted by James Risley

I understand that the closing date for the april 30 contracted 8k tax credit loans has been extended primarily because the lendors could not get everything done in the original time frame. Problems with appraisals being able to be done, etc. Seems to be a problem with a shortage of qualified/approved people in the chain.

It was only on deals already in the works. It was not for deals brought on after that date.

**Matt Fellman** · 07-22-2010, 09:07 AM

Originally Posted by Brandon Whitmore

Matt,

That's not good. The last two weeks, I've been slammed, and have several waiting for me next week (5 I think). I was hoping that it was a sign of good things to come, but now I'm thinking I've been lucky.

That's really good to hear.... I'm hoping I've just been "zigging" and my people have been "zagging" - I talked to one other guy who's been in this awhile and he hasn't worked for almost 2 weeks so go figure.

It's funny how it works... the week before last I had done 2 thru Wednesday and ended up with 7 for the week. I'm glad to hear there's something happening in the area. I think I watch too much news when I'm not working and get depresssed

Ted Menelly · 07-22-2010, 09:31 AM

Originally Posted by James Risley

Correct...only those under contract on 4/30.
I see where Congress is working to stimulate Commercial Lending in the near future so maybe a residential bill is sometime off. Note though that a lot of the residential arm loans will have their rates adjusted in the near future. Here we go again?????

Well, if they don't make enough for what the white house believes is or is not enough I doubt those ARM mortgages will be able to go up. If they have a family of four and make 2000 a year more than the folks they believe deserve the brake then their arm will go up and they will end up losing their home.

Don't you just love the train of thought of those in control.