Local housing market at crossroads
0 Comments | Columbian; Vancouver, Wash., Apr 18, 2010 | by Cami Joner
Vancouver real estate agent Carolyn Crawford, from left, shows a house to the Rinta family Jordan, holding Phoenix, 10 months, Sharon and Bonnie during an April 10 open house in east Vancouver.
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Nicole Lambert, 5, walks from her familys home before potential buyers arrive for a recent open house.
Like other Clark County real estate agents, Carolyn Crawford says she is selling more houses these days, despite the fierce competition for a smaller pool of finicky buyers.
You need to work harder and smarter in the persistent buyers market, said Crawford, who hires help to get her listings in tip- top condition. She researches for zoning issues and welcomes buyers to open houses with freshly baked cookies and glowing candles.
To clinch a sale, Crawford touts historically low home mortgage interest rates and a federal tax credit for buyers a $6,500 write- off for move-up buyers who are selling their primary residence and an $8,000 credit for first-time buyers. But the government incentives are about to end, causing Crawford and other local Realtors to wonder about the markets momentum as it enters the busy spring selling season.
The interest rates and the tax credit are the biggest motivators, said Crawford, an agent for seven years with Coldwell Banker Barbara Sue Seal Properties.
Clark Countys housing market is off to a hopeful start this year, with a total 1,177 new and existing homes sold in the first three months ending in March. It was a 30 percent increase, up from 900 units sold, from the first quarter of 2009, according to benchmarks, a report issued by Vancouver-based Riley & Marks Inc. appraisal firm.
But home buyers now have just 13 more days to qualify for the 2010 tax write-offs with contracts that must be signed by April 30 and close by June 30.
We just dont know whats going to happen after this tax credit goes away because weve never had anything like it before, said Toni Travis, a Vancouver sales agent with RealtyPro.
She said the incentive directly accounted for two of the last three home sale transactions made by Travis and her business partner- husband, Tony Schmid.
Bottoming out
Other realtors envision a different scenario. They feel the tax credit hasnt been the main driver in home sales, but instead was a cushion that created a softer landing for the market.
Schmid says it took the sting out of falling home prices by helping sellers stay near their bottom-line asking price.
I think it helped us reach the bottom, Schmid said.
He and others predict Clark County home values will continue to gradually soften, as sellers disperse a glut of bargain-priced foreclosures and short sales. Such under-priced properties drag down median home prices and keep the housing market just out of reach for move-up buyers who must sell their current homes before they can buy again
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