The home buyer tax credit is done. Sales contracts had to be entered by April 30.
What have the after effects been, you ask?
May, traditionally the height of the spring housing season, has seen Mortgage purchase applications drop nearly FORTY (not a typo) percent from a month ago to their lowest level since April 1997!
Dare I say: look out below. While I applaud the government for trying to fix our housing problems with arbitrary government stimulus, the simply reality is that you can not artificially pull forward future demand and not expect severe consequences. The government wrongly assumed that the economy would have fully recovered by the expiration of the tax credit. This has not come to fruition. What program are they going to come up with next to 'save the housing market'? Your guess is as good as mine.
Weitz Law Firm, pllc
5400 Carillon Point
Kirkland, WA 98033