As a lot of people know, we a fast approaching the April 30th deadline for home buyers — first timers or existing home owners — to be a party to a legally binding contract to purchase their next (or first) home. If people can reach that point and close by June 30th, first time home buyers stand to benefit from an $8,000 tax credit while existing home owners will receive a $6,500 tax credit.  These are nice chunks of money.

The Mad Dash

What I’ve been finding in the MD Suburbs is a lot of homes going under contract. Homes that have been on the market quite a long time, homes that have just recently gone on the market, foreclosed homes, homes of Sellers with Equity. Shorts sales, not so much.  It’ll be impossible to close by June 30th with a short sale so those are continuing to sit while home buyers search for houses that can reach the settlement table by June 30th.

So what I’m seeing is a little bit of a replay from the early part of the century. There is definitely a spike in home buying activity. Will it last?  Probably not.  My guess is that May 1st will cause a return to a more leisurely pace.  Even though the Spring market is usually the busiest time of the year for real estate, the current economic environment does not lend it self to a robust season.  Mortgages are hard to come by, people are strapped for the cash they need for a down payment and closing costs and without the home buyer tax credit as an incentive my guess is that the housing market will resume its slump.

Make Hay While The Sun Shines

If you’re a home seller, this period may be you best chance to get your home on the market and, if it is priced competitively, get it sold.  In fact, I’ve heard of some homes that, when priced aggressively, are getting multiple offers.  I know that no home seller likes to price their home below market even though it will be more likely to create a “bidding war” than pricing too high. Still, it’s something to think about.  Price your home to grab the attention of potential home buyers and present it in a condition that will outshine your competition and people will be competing to buy it by April 30th.

Or just wait.