Spike in Home and Condo Sales

Home buyers signed more sales contracts in August than in any month this year. Much of the boost in home sales came from the approaching deadline of the homebuyers’ tax credit. Many regional housing markets have gained some ground recently as the tax credit for first-time homebuyers stimulated sales of starter homes and condos.

Pending home real estate sales are considered a positive indicator of the health of the housing market. With pending sales the resulting property closings are experienced in October and November. With this trend the housing market gains provides fuel to the recovery of the housing market and general national economy.
As many first-time home buyers rush to beat the deadline for the $8,000 tax credit, which expires at the end of November many home buyers are continuing to have problems obtaining mortgages that may push real estate transactions beyond the November 30th deadline. The rise in pending home sales shows that buyers are returning to the housing market and signing contracts, but deals are not necessarily closing because of long delays related to short sales, and foreclosures.

As many news networks report on the status of the extension of the tax credit for first-time homebuyers, it’s hard to guess whether Congress will extend the tax credit. With any luck buyers and sellers will get a reprieve from Congress with an extension and possibly and expansion to all home buyers. This would be the ultimate boost for the housing industry and an early gift to many home buyers this upcoming holiday season.

posted by Bill Desautels P: (802) 655-9100 (800) 639-4520 x217 F: (802) 655-0400 E: condoguy@condoguy.com The Condo Guy – Vermont condo real estate The Condo Guy has been providing advice to buyers and sellers of Vermont condos real estate for nearly 30 years.