How did the first-time homebuyer tax credit impact the real estate market?

Do you remember how hot the market felt when the first-time homebuyer tax credit hit the streets? If you recall, the tax credit went into effect from November 7, 2009 to April 30, 2010 (but then the deadline was extended to September 30, 2010 – but you had to be in contract by 4/30/10).

I just finished up an appraisal in North Highlands and I know the market really well in this particular neighborhood. I’ve been doing appraisals consistently over the past few years in a particular tract for an investor, so I’ve watched the market decline, seemingly stabilize during the tax credit season, and then decline again. The image below includes all of North Highlands as an example of the impact the tax credit appears to have had. There was an uptick in sales and the decline in property value seemed to stop while the credit was alive.

Now that the credit has been expired for over a year, how would you say it impacted the real estate market? Do you see this trend below in other neighborhoods or maybe just in markets under $200,000? What were the positives and negatives of the credit?

If you have any questions, or real estate appraisal or property tax appeal needs in the Greater Sacramento Region, contact Lundquist Appraisal by phone 916-595-3735, email, Facebook, Twitter or subscribe to posts by email.