A report released on Monday indicates that condos are still selling–albeit at lower price points than most sellers would prefer. The article, which NuWire Investor picked up from HousingWire, indicates that builders and developers who make drastic price cuts have had better luck producing sales than others, even if those cuts go as deep as $100,000 on some units.
The price cuts haven’t been the only thing boosting demand–the deadline for the first-time home-buyer tax credit is fast approaching.
This is mixed news for sellers, especially those that are in a hurry to unload their units. Taking a loss on a sale or making less of a profit than expected will hurt, there’s no doubt, but if a seller is relocating, dropping the price could allow the unit to move faster.
It goes without saying that this news is good for buyers–those who have the means to buy during this recession may be able to reap the benefits later, and getting a unit at a lower up-front price is almost always the goal. What remains to be seen is whether this will give the housing market a long-term boost, or whether it is just a temporary jump driven by deep discounts and federal incentives. A clearer picture won’t emerge for quite some time.