ANN HOKE, Keller Williams Realty
Posted: Sunday, April 11, 2010 10:26 am

With the clock winding down on the Home Buyer Tax Credit programs, today marks the final day of Rutherford County’s SmartMove Homes Weekend.

Take advantage of the weekend sunshine and stop by any of the advertised open houses in Murfreesboro and surrounding areas. You might just fall in love with the home you visit and decide it’s time to make your own “smart move.”

In an effort to call attention to the final weeks of the Homebuyer’s Tax Credits, the Rutherford County Chamber of Commerce, Destination Rutherford, Middle Tennessee Association of Realtors and Rutherford County Home Builders Association have all joined forces under the SmartMove program. The purpose of the program is to help stimulate jobs in an important segment of our local economy by increasing home sales in our community.

National economist and real estate expert John Tuccillo spoke to area business and real estate professionals at a Chamber Power Luncheon this past Thursday. Tuccillo stated that the typical $8,000 tax credit (earned by first-time buyers) generates an additional $80,000 of spending in the local economy. In other words, he reminded his audience that everyone in the community benefits from the positive impact on job preservation and growth.

Tuccillo presented an overview of his analysis and forecast for the U.S. economy. In short, the recovery will be slow but hopefully steady, and not trigger a double-dip recession.

He took time to make a major point that the economy, just like the real estate market, is impacted largely by local conditions. Tuccillo compared Middle Tennessee to the Columbus, Ohio area with a balanced economy framed largely by four powerful engines – government, education, health care and distribution services. In his opinion, our region will continue to grow and prosper … and recover more quickly than many other parts of our state and country.

What lies ahead?

No one knows how the market will react after the Homebuyer’s Tax Credits expire in a few more weeks (technically the credit expires June 30, but homes must be under contract by April 30). Tuccillo shared his optimistic outlook by saying that the real estate market has gained traction over recent months and should remain steady throughout the year. He did agree that there may be a temporary drop off during the early summer months before demand returns to normal.

Over the past few weeks, home sales in Rutherford County have increased in keeping with the normal seasonal pattern as the weather has improved; and buyers and sellers alike hurry into action before the Homebuyer’s Tax Credits contracting deadline approaches at the end of the month.

During this same period, existing listed inventory (homes for sale) has also increased as more and more prospective sellers are testing the waters, seemingly motivated by the stimulus offers.

If you are considering a home sale or purchase in the next several months, now is the time to act. Homes that are market ready, professionally staged and properly priced will have an advantage over homes that are rushed to the market without making any effort to maximize their resale value.

Both buyers and sellers alike will be well served to jump into the market now, even if they don’t qualify for the tax credits, before prices and mortgage rates start to rise. Most experts see little or no inflation in local home values this year, but mortgage rates will likely increase over the last half of 2010.

Send your comments and ideas for future real estate related topics to Ann at ann@annhoke.com.