It is just about a week until the $8000 first time homebuyer credit and the $6500 move-up buyer credit expires. We have heard a mixed bag of predictions from “experts” and industry folks as to what this will mean for the Columbus and Central Ohio Real estate market. Since this is my blog, you will get my opinion, and here it is: NOT MUCH. There was a bit of a dip in December 2009 through this February in contracts and closings, but that had as much to do with the slow buying season/harsh winter as any IRS enticement.
I like to think of the tax credit in this way: Let’s say you buy a $100.00 appliance, and you bought it because you needed it, and you liked the rebate. Two months go by, and you forgot to send in the rebate, and it has expired. Are you going to attempt to return the appliance? No, you will probably shrug your shoulders, and forget about it. I think that is what will happen with the tax credit. Those buyers who are in the market now, and end up missing it, will still find the house they want, move in, plant flowers, put down mulch, paint the bedroom their favorite color… and get on with life. They still want a house, and, if they can qualify, they will still buy that house.
The real estate marked in the Columbus metro area has traditionally been stable, and continues to do so. We are not an Iron Belt/Rust Belt city, like Youngstown, Toledo, and Cleveland (to an extent), so, even though we have had significant job losses, our city still has stable employment in state and city government, banking, insurance, and other industries. The forecast is bright for Columbus, and that will keep the housing market strong.
