No more 1st time homebuyer credit. How will it affect market? (foreclosure, 5%)

[zz4guy]

Any thoughts on how this will affect the buyers market for homes?

[SmartMoney]

The buyers are still coming out of the woodwork........Everything I have read says come 2011, we will be back in the thick of it......we're on the upswing.

[skylinet]

I sold two homes this month to first time home buyers, after the credit expired...
People will still be buying homes.

[cheryjohns]

People still buying - but this is Houston.

[evilnewbie]

People will be buying but just not as much people... location is also important as is inventory... cheap inventory and good location will remain busy... but if the inventory is expensive stuff (350k+), its going to be dang slow...

[wilmingtonangel]

I noticed some price drops in my area. You can tell who is really serious about selling their house and who is hoping for somebody to fall in love with their house & overpay. I've seen some very aggressive $10K - $30K drops. That's in the low end of the market - under $200K. I don't really pay attention to anything above that since it's not in my price range.

Just for example - an 1800 sq foot house that probably would've gone for $225K-$260K in the 2005 peak has been for sale since early this year. The starting sales price was around $199K I think. In April they dropped the price to $179K. Earlier this week they dropped it to $159K, lowest price in the neighborhood. It's obvious they are serious sellers. A foreclosure in the same neighborhood (similar house on a smaller lot) was on the market for $166K, and was under contract within a few weeks.

In my area I have noticed a trend over the last few years - today's amazing deal is tomorrow's average price. It has been a slow but steady descent. I'm not sure what's going to happen from this point forward. It's still a little early. In another month it will be interesting to see if other houses will follow suit with the price drops, and/or if sales will pick up. Unemployment is pretty high in my area and those with jobs aren't making a lot of money.

[cowboyxjon]

I'm a first-time homebuyer and I'm looking right now. I didn't want to rush and "settle" for something just to get that $8,000 tax credit. I'd rather not get the credit and instead wait to find a place that I absolutely love. Also, I'm not a realtor or an expert by any means, but I've noticed that in my neighborhood, prices have dropped since the end of April, some more than $8K.

[sheriwx]

In my area prices seem to be lower and competition much more lax since the end of April. I think it will be a slower summer for the housing market here.

[cohdane]

Here are some facts. The Mortgage Bankers Association publishes weekly reports on refinance and purchase applications.

After the tax credit deadline, purchase applications dropped dramatically and are now at a 13 year low (and 27% lower than this time last year).

Mortgage Refinance Applications Continue to Increase, Purchase Applications Decline Further in Latest MBA Weekly Survey

The tax credit cannibalized the spring selling season. Interest rates are under 5% and the purchase applications have fallen off a cliff.

[tarragon]

Here in Central Maine, it's almost impossible to find a decent home under $250k and even the more expensive ones only come with 1/3 - 1/2 acre and if you are lucky, you may get one acre. $200k here finds you a not so great neighborhood and a fixer upper. They say it's a buyers market, but it doesn't seem that way to me. I have been looking for nearly 2 years.