Today's KCM Blog Post: "Supply & Demand Post Tax Credit"
Friday, May 21, 2010
More Homes, Fewer Buyers, Lower Prices
The big question in real estate is what will happen now that the Homebuyers Tax Credit has expired. Did the tax credit kick-start a housing recovery? Would the momentum continue throughout the year? Any market is determined by the supply and demand for the product involved. Today we want to look at those two items as the first housing data after the tax credit is starting to emerge.
The tax credit definitely increased home sales going into April as evidenced by the increase in both pending sales (21.1%) and existing sales (16.1%) reported by the National Association of Realtors. The final numbers for April will be sensational. How will that news impact future supply?
