With the extended tax credit now in place, we think it’s a virtual certainty that the first and second quarters of 2010 will be very, very active. Based on our experience at the end of last year, we expect that offer activity will again fall off fairly steeply after April 30, and closing activity will likewise decline after June 30. We expect the year to be atypical in terms of the normal seasonal patterns, with heavier than normal activity in the fi rst half, followed by an unusual drop-off. The question is, will accelerated activity in the fi rst half reduce inventories to the point where the market can move forward from there on a somewhat normal footing? While we won’t know anything for sure until a year from now, our guess is that while 2010 will be “front end loaded,” the foundation for further growth in 2011 and beyond will have been laid. www.StarkHomes.com
Tags: $8000 Tax Credit, Market News
