File this under “d” for “duh” — buyers across the country reacted to the lack of $8,000 federal tax credits for home sales in May by signing fewer contracts. Not exactly a stunning development.
Nationally, pending sales fell about 16 percent vs. a year ago, when the first-time home buyer tax credit was in effect. Here in Massachusetts, the number of pending home sales also slipped in May, compared to the same month last year. Single-family homes fell by 3% and 6% for condos.
The question that only time will answer, but about which Boston condo-market watchers are happy to put in their two cents now, is whether the contract slump is temporary. If people bought homes in April rather than May or June, then you’d expect to see more activity in July. But if people bought homes in April rather than the rest of the year and 2011 besides …
Add the uncertain economy, mix in foreclosures, and you have a hard-to-predict brew.
So here’s the big question (OK, questions): What are you seeing out there? Is it easier to negotiate down asking prices? What competition are your buyers seeing, if any? Are your sellers getting showings? What does the market feel like compared with April?