Are we looking back at the bottom? Who knows? After peaking in July 2006, the Portland housing market dropped nearly 40 points by April of this year. May offered a minimal bump, June added one point and July added two more to get Portland back to 150.06. There is a three month lag in available data.
Will Congress extend, expand or let the First Time Buyer Credit expire?
NAR says it added 350,000 sales but others point out that it was at a cost of over $40,000 per each additional sale.
What will stimulate the middle portion of the Portland real estate market?
Sales between $500,000-$800,000 are still stuck in a rut. I’d be more likely to support something that addresses this segment of the market specifically (sure there are first time buyers in this segment but they are the exception). If Congress is going to expand, I’d propose adding those that sell and buy a primary residence using similar time frames as a 1031 Exchange as the qualifier (45 days to identify, six months to close) to the Credit. Jumbo loan availability will also help.
The debate is real. You have to be able to pay for these programs. You could add caveats or open it up in any number of ways. For now, we have to assume the first time buyers will have to close by November 30th to get the $8000 First Time Buyer Credit.