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With the tax credit gone, will we see a bumper crop of marked down homes?

Posted by Scott Van Voorhis May 4, 2010 09:59 AM

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I will tell you what I am interested in right now. It's not how many homes got put under agreement as the end of the home buyer tax credit drew near last week.

Rather, it's how many of these homes will come rolling back onto the market over the next few weeks. Given the last-minute rush we saw before the tax credit expired on April 30th - and lots of tales of sellers fishing for silly prices - there are likely to be quite a few homes hitting the market once again after initial sales agreements fell through.

In fact, it was quite the last minute rush, comparable to shoppers out late on Christmas Eve grabbing what they can get before the stores close.

Pending sales of single-family homes jumped 25 percent this April over April 2009 and were up more than 16 percent from March, the Massachusetts Association of Realtors reports this morning.

It's roughly the same story with condos, with pending sales up 22 percent year-over-year and 8 percent over this February.

For evidence of deals falling through, look no further than our intrepid buyer "Frank" who is now being pursued by Realtors who previously spurned his reasonable efforts to haggle for a decent price.

Deals may be falling out more due to the new, revamped appraisal system than lenders, though even weak standards are better than the no-standard bubble years, where if you were still breathing, you could pretty much get some sort of mortgage.

There's also the rush factor here - there's good reason to be skeptical of the quality of some of these pending sales given the last-minute, beat-the-tax-credit-deadline frenzy we are just coming down from.

Want to yak about this some more? Meet me and other Boston Real Estate Now regulars tonight at 6:30 p.m. at Tavern in the Square in Cambridge's Porter Square.

This blog is not written or edited by Boston.com or the Boston Globe.
The author is solely responsible for the content.

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About boston real estate now
Scott Van Voorhis is a freelance writer who specializes in real estate and business issues.

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