The first half of 2011 couldn’t be more different than the first half of 2010 in terms of home buyer profiles. In early 2010, the homebuyer tax credit was the primary impetus for home purchases. Many buyers accelerated their purchases to close within the first six months of the year. There is also indication that people looking to wait until 2011 to buy may have moved up their purchase by a full year to take advantage of the tax credit.
In early 2010 houses priced below $150,000 were selling rapidly. These houses needed to be renovated on par with higher priced homes (i.e. granite countertops, stainless appliances). When the tax credit expired, this market dramatically decreased. In many submarkets of Atlanta, sellers cannot find buyers at this price point in 2011. The tax credit had that large of an impact.
On the flip side, investors are having great success in 2011 selling houses at higher price points (> $300,000). These end buyers tend to have higher credit scores and verifiable income. Both of these items are helpful for FHA or conventional financing today. Investors have higher risk, though, at this price point.
New home builders are also starting to come back in the market. That subject will be discussed in a future post.
Good luck with your investing. Call Dean at 404.814.1644 x101 if you need funding for your next real estate investment.