Real Estate Market Report

On a national level, the Pending Home Sales Index rose 3.7% from September to October 2009, with the greatest increase (19.9%) in the Northeast. Even more significant, the increase in the Index from October 2008 to October 2009 (31.8%) was the largest increase ever recorded since the Index was established in 2001 by the National Association of REALTORS (NAR).

The Index is a forward looking indicator based on contracts signed during the previous months. Both national and local statistics indicate that there was a pent up demand of renters who purchased their first home this year and likely took advantage of the first-time buyers tax credit. NAR estimates that 350,000 buyers would not have purchased in 2009 if it were not for the tax credit. 47% of all buyers in 2009 were first-time buyers, according to the 2009 NAR Profile of Home Buyers and Sellers, and nearly 2 million buyers will take advantage of the tax credit in 2009.

It’s anticipated that the expanded and extended tax credit will boost home sales by 15% in 2010. There is a lot of opportunity for real estate consumers in today’s market — 1st time buyers, repeat buyers and sellers.

1. First-Time Buyers: Continue to qualify for up to an $8,000 tax credit and income limits were increased to $125,000 (individual)/$225,000 (married), allowing even more purchasers to now qualify.

2. Repeat Buyers: The tax credit has been expanded to include repeat buyers who owned and resided in a primary residence for a minimum of 5 of the last 8 years. The same income limits apply as indicated above.

3. Sellers: Buyers need inventory to choose from! Nationally, properties on the market have been declining month to month. With the influx of buyers anticipated to enter the market in response to the tax credit, if you’re thinking of selling there may not be a better time to list your property than now.

Looking to buy or sell? Need more information on the tax credit? Nothnagle agents have the training, skills and expertise to navigate through all types of market conditions. Contact a Nothnagle agent directly or select our Live Chat feature on to get started.

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