Market Update:

The last few months, prices have dropped in all of our areas in Collin County after tracking most of the cities consistently. There could be several reasons for that: that prices have fallen, that most sales are foreclosures and short sales which do sell for less since they are distressed properties, and the fact that first time buyers are taking advantage of the $8,000 tax credit which is still around until December 1st. Of course our unit numbers are down (the number of actual houses that have sold). A lot of that comes from the fact that we are not confident that this is the time to move up.

Most of our sales in our area come from move-ups or now, move-downs. The fact is most prospective buyers don’t feel they are getting enough money out of th existing home in order to buy that new home. Also, the inventory is low so it is hard to find what you want without really wanting to “steal” a house like you would think you could! The better homes which are few do sell quickly and higher!

The realtor associations are trying to get the government to not only extend the tax credit but also give a tax credit to those that would like to move up or down! I don’t like any of these stimulus packages but think this plan might work in giving an incentive to move up and also giving more available funds to be spent in other areas to help the economy. I still say that a lot of you will be sorry you did not take advantage of the tax credit, the low interest rates and the lower prices which are there! Just remember that I said it!