Detroit Real Estate

What will happen after the first time home buyer tax credit expires?  I don't think anybody knows.  I myself think it has been one of the Democrats best success stories.  I think if you ask any real estate professional you will hear that the tax credit did bring a large number of buyers into the market.  The tax credit created demand.  And I believe the demand in the Metro Detroit housing market was enough to temporarily stabilize the home values.

Before the first time home buyer tax credit we were on a major slide of home prices.  The tax credit brought investors and first time home buyers into the market.  In the last year it was not unusual to see multiple bids and homes going over list price.  All due to first time home buyers and the tax credit.  Sure the higher priced homes were not affected but the homes under $250,000 range was.

Investors also jumped into the market.  They could buy and then fix up homes to flip to first time home buyers.  That also helped the market.

As for what will happen I honestly don't know.  I do think demand is already dropping off.  We are exhausting the first time home buyer pool.  Now we are getting bad credit people applying.  There are less qualified buyers out there right now.  So hopefully home values won't drop after the first time home buyers leave the market because the credit expired. 

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