Real Estate In Houston Likely to Remain Strong after First Time Homebuyer Tax Credit Expires

The entire real estate community is nervously awaiting today’s expiration of the Federal First Time Buyers tax credit. There is wide spread panic that this credit is what was behind several very strong months of sales. While this tax credit helped those buying real estate in Houston, let’s look at it from both perspectives.

There is no doubt by offering buyers $8,000 that it helped a flurry of activity. I think as you look at the buyers circumstances you will find that most were going to buy regardless of the credit and all it did was make them buy sooner. Because most of them still had enough funds to close before the credit was received, this was more like icing on the cake rather than a deciding factor.

So let’s look at what will help keep the real estate market in Houston strong in the remaining months of the year. First is consumer confidence is up to 57.9, up from 52.3 in March. In addition, the Present Situations Index is up to 28.6% from 25.2%. Another impressive factor is the 3.2% economic growth in the first quarter of the year. When all of this is combined with the recent surge in companies now hiring, this can only mean a renewed confidence in personal income which translates into a better housing market in Houston.

These next few months will be a test of the market post-tax credit. Although we need to keep our eyes on the climbing foreclosure rate, all signs point to more positive growth in Houston Real Estate.

If you are looking to buy a new home in Houston, please visit our website at https://www.ourfirstnest.com or https://www.newhomeshouston.org