A consensus poll of real estate agents with Keller williams realty in the Sacramento area revealed today that the tax credit pulled forward demand, got people to buy earlier, and that there will likely be a lull in buyer traffic at the end of 2009 into 2010.

The tax credit for first time buyers remains the same, $8,000, but now current homeowners who buy a new residence can qualify for a tax credit of $6,500 under the program.   First time homebuyers are defined as not owning a home in the past three years.  Current homeowners are those buyers who have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years. This means someone who sold their home 2-years ago but lived in it for 5-years before they sold are eligible for the tax credit if they buy a new home. 

Add the fact that we are going into the slow time of the year, It seems that buyer activity here in the Sacramento valley for first time and move up buyers alike may definitely be going into a bit of a dormant stage.

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