There was a lot of concern among both Realtors and home sellers about what would happen once the Homebuyer Tax Credit expired on April 30th. The graph above is created from data in the Northstar MLS and shows all pending sales for single family homes in Dakota County.
As you can see, we had a large peak of deals get agreed to in late April. The first week of May looked pretty good but there is evidence that some backdating of transactions was taking place and some deals don’t get moved to the pending status until the inspection is done, even though it’s considered an agreed to Purchase Agreement.
The week of May 9-15 is probably our best example of what the impact of the Tax Credit expiration will have as we saw a significant drop in deals. This seems to coincide with the amount of showing activity that is happening in the market place.
Interest rates remain very attractive and while deals are certainly taking place, the pressure on prices will continue to be felt for some time in the future.
