The Great Home Buyer’s Tax Credit hurts real estate in Bergen County NJ. PART 1

The politicians and media are telling everyone how the tax credit has helped boost the economy, here in Bergen County and the rest of New Jersey and country. They are literally patting themselves on the back for this great thing they did for the American economy. If one looks at all of the statistics, especially in Bergen County New Jersey, it’s easy to see these politicians and media moguls should actually just shut up!
Their opinions are based on statistics. Okay, so let’s look at them. The National Association of Realtors® told us that in the first quarter of 2010, there was an increase in home sales in the Northeast in the first quarter of 35% over that of the first quarter of 2009. That is true with the same increase in Bergen County and towns like Hasbrouck Heights. What they don’t tell you, from a real estate market perspective is that the real estate market in the first quarter of 2009 was so bad, that if there wasn’t an increase, the suicide rate for real estate agents would be the highest of any profession.
Here is what this great tax credit did for us: It took people that would normally have bought a home and accelerated their decision time in order to get the offer or contract accepted by April 30, 2010. What it also did is give the future politicians-attorneys- the opportunity to put others off because they were “so busy” that they couldn’t return phone calls or do any other business so they could get these transactions completed by June 30, 2010, which was the originally date transactions had to be completed. (This deadline has since been extended to September 30, 2010, so we await more no return phone calls from attorneys around the last week in September). See part 2 where I examine local Bergen County Markets.