I don't believe the expiration of the $8000 Tax Credit will significantly affect home prices in Oak Harbor. I expect prices to continue to fall slightly through the winter regardless of whether the credit is extended or not, because winter seasonally is a slow time here anyway, which means sellers are often more willing to make deals. Trying to "time the market" is risky though, because if interest rates go up, you could erase any savings you might expect from lower list prices.

My advice: get prequalified and find out how much you can afford, contact a Realtor and look at some houses, and if you see something you like, then buy it. If you don't see anything you like, you can wait until the supply increases again next spring, and hope that prices have declined further and interest rates have remained low. There are many good reasons for buying real estate right now, but talk with a local lender and local Realtor and get some additional perspectives before making your decision.

If you want to take advantage of the tax credit, you may be too late anyway. During the Thanksgiving holiday most lenders and Escrow companies will be closed for four days at the end of November, so most lenders are telling us that if you aren't in escrow already, they won't have time to process your loan and get you closed before December 1st. Good Luck!

I would not expect an immediate drop in listing prices. Many homes are already priced quite aggressively and we still have a large inventory of bank owned and short sale homes on the market. The $8000 credit is free money (for now) but if you are looking for the best deals out there right now you may not have enough time to close on one anyway and get the credit. If you have identified a property you are interested in and can close on time, I would be more inclined to offer. I don't believe a lot of seller's are out there thinking if they don't sell by the deadline that they have to drop their price another 5% on top of the deal you could get now.

Many experts say the bottom is already here and I tend to agree with them. We will have great deals for years to come because we will still have another few years of short sales and bank owned but without knowing where interest rates are going to be, if you are getting the tax credit, I don't think you will have a much better time to buy than right now unless they extend the credit.

I believe the market will act independently from this rebate issue. It was fine for the entry level home market but didn't do that much for the overall market. There will be more stimilus packages in the future anyway. You should make your decision based on what is happening in the local market you're interested in. National, and even regional news can be misleading to buyers who are looking in communities like Oak Harbor. Hook up with a local Realtor who knows the trends in your area and follow his/her advice.

I think the answer to that would depend on the market and the price range. But ignoring the tax credit, between Thansgiving and Xmas is often a slow time for sellers, so it can be a good time to make an offer (again depending on the area and market).