The Real Estate Bloggers

The Market Beats Tax Credits For New Buyers

Posted: 24 Jan 2011 04:54 AM PST

Money_dn_drain Remember how the Federal tax credits last year were so important? We were all in a tizzie that this was how we were going to keep the housing market afloat and buyers needed this incentive.

Check out this like from Gary Edwards of Dickson Realty in Reno, Nevada:

“Even though the tax credit has gone away, prices have continued to decline in the Reno area and, in many cases, the first-time homebuyers are coming out with even better pricing for their purchase,” he said. “Instead of the $8,000 tax credit that we had in 2010, they’re seeing a $10,000 drop in the price of a home from a year ago and, in some cases, even more. via RGJ.com

This story I am sure has been repeated across the country as the tax credit was used to hype sales, not benefit buyers. The market simply took your tax money, credited to the buyers, allowed the sellers to get a few extra thousand, and then move on. We got inertia but little value.

And now the buyers are watching their properties decline in value as the market absorbed the pricing difference.

But there is one problem left. Instead of the market dropping initially and stabilizing we have to deal with another year of dropping prices and negative reports in the press.

As I have said many times before, a market needs confidence to work. Buyers needs to feel they are not going to be making a bad deal. Sellers need to be confident in the price that they are setting will attract quality buyers.

Until that happens, real estate sales in the United States will flounder.

Thanks for reading this post. If you would like to see more articles like this, please come visit The Real Estate Bloggers. where it was originally published.

The Market Beats Tax Credits For New Buyers

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At Least Our Real Estate Market Is Not Like Dubai’s

Posted: 24 Jan 2011 04:43 AM PST

Dubai We may think that the United States market is frustrating and slow, but the volume of transactions is not taking a hit like the former glamor child Dubai’s is.

Transaction volume in United Emirate territory is down 65 percent from last year. What is making matters worse is that 25,500 new housing units are expected to hit the market this year to add to the glut.

With rents down 11 percent in the 4^th quarter of 2010 there is not even the relief of capturing some of the money back by landlording the inventory.

Dubai is a classic bubble market, overgrown and overpriced, with expensive projects continuing to come online and no real market left for buyers. The only good thing for the Emirate is that they are still pumping out $100 barrels of oil so the government and leaders will be able to absorb some of their real estate losses.

The total value of real estate deals in Dubai plunged 65 percent in 2010 as new supply squeezed market prices, a new report has said.

The number of deals fell by more than half during the period as lending in the emirate remained pinched, the latest data from Jones Lang LaSalle showed.

In the third quarter, less than 600 property transactions were completed, down from more than 1,200 in the same period in 2009.

Dubai’s already glutted real estate market will see a further 25,500 units come online in 2011, analysts said, with no major project cancellations expected over the next year. via Arabian Business

Thanks for reading this post. If you would like to see more articles like this, please come visit The Real Estate Bloggers. where it was originally published.

At Least Our Real Estate Market Is Not Like Dubai’s