One hot week for Twin Cities home sales

  • Article by: KARA McGUIRE , Star Tribune
  • Updated: May 10, 2010 - 8:39 PM

The results are in -- and the home buyer tax credit provided a big jolt to the Twin Cities housing market in April.

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joeeeeeeMay. 10, 10 8:49 PM

progress. We can use all of that we can get.

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thegoodlifeMay. 10, 10 9:14 PM

Coaxing non-buyers to become buyers. People buying homes that they may not have really wanted just to get the $8k tax credit. People buying homes that they aren't quite ready for just to get the credit. Pulling buyers forward to this year from the next couple years. Congrats...you've successfully created another false buble, with false demand, and we'll be paying the price for the next couple years.

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aviendhaMay. 10, 1010:47 PM

Nobody buys a house just to get a tax credit. That's a completely absurd statement and I'd have to think thegoodlife has never bought a house, because it's not exactly an instant process, or a free one either. First of all, the tax credit requires one to live in the home as their primary residence for 3 years, or they have to pay the credit back (pro-rated depending on how long you live in the house). This alone minimizes the likelihood of flipping. Secondly, credit requirements are much tighter than they were prior to the crash. The people who qualified for mortgages during this tax credit had to prove they could afford the home with traditional terms. And thirdly, any fool knows that it'll be years before home values rebound. A home purchase is no longer seen as a short-term profit engine in a market that can't go anywhere but up. The people "paying the price" are the ones who bought at the peak of the bubble with financing packages they couldn't afford. The people who took advantage of the tax credit got the same house for a much lower price, a killer fixed-rate mortgage at historically low rates, and $8K to sweeten the deal. It was the opportunity of a lifetime for buyers, and it certainly helped sellers who were forced to sell in a market already overwhelmed with inventory, and install long-term residents into homes that were previously bank-owned and often sitting vacant.

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noinkMay. 10, 1011:52 PM

I read in the new federal Health Care bill there will be a 3.5% tax on all home sales. If this is not removed a home that sell for $400,000 will be taxed at $14,000 to the seller. This is not a good tax!

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HealthcrusaderMay. 10, 1011:58 PM

Here comes another market correction! 1980s prices here we come!

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purple64May. 11, 10 2:50 AM

Buyers market! Now I'm going out looking and I bet a get a better price then WITH the credit! Sellers will have to wheel and deal now to get that house sold!

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verdepatoMay. 11, 10 6:33 AM

The homes that are still on the market just dropped by a heck of a lot more then $8000.00 Now that this goofy goverment give away is finally over (we hope) Quit giving away my hard earned money no more welfare for the rich or the poor or any one in bewteen

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denisjahMay. 11, 10 7:25 AM

You have some responsibility to check "facts" before you spread them. The hard truth is that, if you make less than 250K a year, your taxes have dropped under Obama.

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lothlornMay. 11, 10 8:09 AM

Its all Great as long as there is a bailout of some kind. Payed for by borrowing money from CHINA. Its 3 months from now that will be more telling.

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oimmigrationMay. 11, 10 8:10 AM

Its was a sellers market before 4/30/10, but now its a buyers market. If you thought you got a good deal before the tax credit expired, just wait, you aint seen nothin yet. Time to go shopping for a new home.

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