Existing Home Sales Had a Large Rebound

According to the information below from Realtor.org, first-time home buyers accounted for almost half of home sales. I hope that the tax credit can be extended. Many of my recent activity has been buyers trying get the tax credit. This credit has also helped some of my sellers upgrade to their second home due to the first time home buyers purchasing their home. It will be interesting to see what congress decides in the coming weeks.

“Existing-home sales bounced back strongly in September with first-time buyers driving much of the activity, marking five gains in the past six months, according to the National Association of REALTORS®.

Existing-home sales—including single-family, townhomes, condominiums, and co-ops—jumped 9.4 percent to a seasonally adjusted annual rate of 5.57 million units in September from a level of 5.10 million in August, and are 9.2 percent higher than the 5.10 million-unit pace in September 2008. Sales activity is at the highest level in more than two years, since it hit 5.73 million in July 2007.

Lawrence Yun, NAR chief economist, said favorable conditions matched with a tax credit are boosting home sales. “Much of the momentum is from people responding to the first-time buyer tax credit, which is freeing many sellers to make a trade and buy another home,” he said. “We are hopeful the tax credit will be extended and possibly expanded to more buyers, at least through the middle of next year, because the rising sales momentum needs to continue for a few additional quarters until we reach a point of a self-sustaining recovery.” . . . . .

Conditions for First-Time Buyers:

Early information from a large annual consumer study to be released on Nov. 13, the 2009 National Association of REALTORS® Profile of Home Buyers and Sellers shows that first-time home buyers accounted for more than 45 percent of home sales during the past year. A separate practitioner survey shows that distressed homes accounted for 29 percent of transactions in September.”

Read More . . . Quoted from Realtor.org

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Photo Copyright, Amy S. Myers 2009

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