How much impact has the tax credit had on the market?
Here is the summary of detached sales and avg. $$ per square foot in the same zip codes combined from yesterday, for the January 1st through April 15th period:
| Year | $800,000- | $800,001+ |
| 2009 | ||
| 2010 | ||
| YOY Diff |
Sales above $800,000 have increased sharply (+42% YOY) without the government cheese – but the lower pricing must be a contributing factor.
Brie wins over Velveeta!
Well,
Remember though, that during the same time in 2009, that jumbos were spread 3 to 5% from agencies. Now, the spread is back to a normal <1% in most cases. There's little comparison from a financing perspective, which is largely why the over 800K market has reopened.
It's still far from healthy though, as the pricing is showing.
Jim, did you listen to the interview with Mark Hanson on kingworldnews? I’m not sure if he’s betting on it but he seems convinced that the pols will extend and broaden the tax credits
http://kingworldnews.com/kingworldnews/Broadcast/Entries/2010/4/16_Mark_Hanson.html
“It’s still far from healthy though, as the pricing is showing.”
What is healthy for this >800 crowd.
Real Estate cheese is rich person welfare.
Just start foreclosing