Thursday, January 14, 2010

First-Time Home Buyers Dominate Tampa Real Estate Market

First-time home buyers dominated the Tampa real estate market in 2009 and that trend is expected to continue into the first quarter of 2010. The 2009 First Time Home Buyer tax credit has been extended so that those with a binding contract on or before April 30, 2010, and closing before June 30, 2010, will be able to take advantage of this fantastic opportunity. That combined with fire sale real estate prices will create a second wave of first-time home buyers eager to take advantage of the benefits of homeownership. It will be forthcoming first quarter 2010 according to real estate market forecasts.

Paul Bishop, vice president of research of the National Association of Realtors stated in an article titled NAR Survey First-Time Home Buyers Set Record in Past Year that “several factors have been at play. Tax incentives, record high affordability conditions and pent-up demand brought a record share of first-time home buyers into the market. These buyers are critical to housing and a general economic recovery because the market always heals from the bottom up – they absorb inventory, free existing owners to make a trade and stimulate related goods and services.”

SI Real Estate forecasts that this is the calm before the storm. Just as home buyers rushed to take advantage of the tax credit prior to November of 2009, indications are that real estate sales will increase markedly once again, helping lead the way to recovery of the real estate market.