Why is it that the homebuilders and real estate agents always insist that now is the right time to buy? Oh yeah, they’re in the business of selling houses.
The latest release from the National Association of Home Builders (NAHB) stresses that homebuyers could miss the opportunity to qualify for an up to $8,000 tax credit if they fail to buy before December 1, 2009.
“We are pulling out all the stops to let potential buyers know they are in the midst of a true buyer’s market,” said Joe Robson, chairman of the NAHB, in a release.
“Eager buyers who don’t want to wait for a brand new home to be built have the opportunity to move in much more quickly than in the past, due to a 12.2 month inventory of new homes on the market. But they need to act quickly.”
Remember, it was the homebuilders who pushed for lower interest rates, allowing them to hold prices steady while affordability increased for potential buyers.
If mortgage rates stuck near more traditional levels, home prices would need to fall further because of the huge supply overhang, but they’ll fall regardless of the record low mortgage rates, which tells us how much of a sellers’ market this really is.
In their previous release, the NAHB argued that building another 500,000 homes could create over 1.5 million new jobs and nearly $80 billion in wages across manufacturing, trade, and service sectors. But at what cost?