For me and Dianne Schaefer at 4 Buyers Real Estate, March was a much saner month than February. In February, we saw more frantic activity at open houses than we did in March. In March, more properties were on the market and buyers seemed to slow down a bit, but only a bit. There were still bidding wars. There were also more properties that came down in price before they sold. More sanity and more time gives sane purchasers a chance to buy sanely. I appreciate Scott when he echoed my sentiments about slowing down.

Not giving the buyers a chance to think may seem like a good tactic for seller, but it can work against them. One of the hazards for sellers when they hold a free-for-all, buy-now-or-lose-it deal is that these impulsive deals frequently fall apart in a fit of buyer’s remorse a week or so later. Then the seller’s agent has the stigma of “Back on the Market” to give non-answer answers about.

I think it is better for the seller to give buyers a day or two to think and to do some research, then collect all the offers and see who has the best one. Do you agree?

What I think has happened is that the tax credit deadline* has made the spring market demand come earlier. The spring rush was in February into March instead of March into April. But the houses didn’t really start coming onto the market until March, creating a bottle-neck for the stampede. The crowd was dispersed a little when houses started coming on the market when spring really arrived.

When all is said and done, I won’t be surprised to see first quarter sales volume higher, but the annual volume evened out by a deeper slump in volume sometime later this year. Time will tell on that. If the interest rates go up, I am sure to be right.

I’m not making a prediction about the extension of the credit, this time. I am on record that I hope it isn’t extended. I don’t think it helps buyers; I think it helps sellers. I think it is hurting buyers by artificially stimulating demand. Do you agree?

*Reminder for those who are tax credit hunters: to collect the credit you must have your Purchase and Sales agreement by April 30th.