Top 10 Real Estate Predictions for 2010

The first-time home buyer tax credit was extended in 2009 through April 30th of 2010, providing the sale closes by June 30th. Second-time home buyers may also qualify for a tax credit, although a bit less. Both tax credits expire on June 30th and are unlikely to be renewed.

As a result, interest in buying a home will wane. Those who were induced to buy primarily due to the home buyer tax credit will make certain that they enter into contract by April 30th. There is no tax credit offered to buyers after that date. This will cause a mid-summer slump in sales, especially when interest rates rise because the Feds will stop buying mortgage-backed securities in March.

_{At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.}