What now? 

Everyone in the real estate industry wondered what might happen after the government tax credit incentives expired on April 30th.

Would my phone stop ringing?

Would buyers who didn’t find a home in time just give up?

 Would sellers want to take their home off the market and wait it out?

While the tax credits definitely had a positive impact on the market (the number of homes under contract shot up 64% on the heels of the home buyer tax credit deadline, and the average time it took a home to sell dropped from 80 days to 65 days) real estate in Austin is still going strong.  Three contributing factors are as follows: 1.) the European currency crisis has made the US Dollar more attractive to investors and is thereby helping to keep interest rates below 5% for many buyers, 2.) we are seeing an emerging group of buyers who didn’t qualify for the April tax credit, deciding instead to sit on the sidelines and wait for the mad rush to be over and take advantage of decreased competition and more flexible sellers, 3.) the home prices in many Austin neighborhoods remain lower than they have been in several years, so buyers still see an opportunity to find a deal.

So what does all this information boil down to?  If you are planning to sell your home soon, the buyers are still out there, but you may have to be flexible on price to reel them in.  On the other hand, if you are planning to buy, many sellers are adjusting their price or offering incentives in the wake of the government incentives, so good deals are still out there.

If you are interested in knowing what the market is doing in your neighborhood, or a neighborhood you are considering, call one of our talented agents at Platinum Realty today.  And if you’re out looking at homes this weekend, try our mobile MLS search at http://www.platinumrealtyaustin.com/homes/ where you can see details on any home in the Austin MLS.