The federal stimulus program for first time buyers extended in November included move-up buyers. Contracts for either type of buyer must be written by the end of April and close by June 30th.
2009 sales were largely driven by first time buyers capturing the $8,000 tax credit. The National Association of Realtors study findings indicate:
- 51% of all sales nationally are first time buyers compared to 35% in 2008
- first time buyers are looking for bargains with 1 in 3 buying a distressed property
So, what’s the ongoing affect on sales?
Lawrence Yun, NAR chief economist, projects the extended and expanded tax credit will encourage 2.4 million households to take the credit in 2010.
NAR projects that more sales of existing homes than new construction. November 2009 data showed a slump in Pending Sales. Pending sales a forward-looking indicator projecting sales in 1-2 months.
- December, increased 1 percent to 96.6 from 95.6 in November, and remains 10.9 percent above December 2008 when it was 87.1.
- In November, the monthly index had fallen by 16.4 percent from surging activity in preceding months
- Regionally, the South rose 2.2 percent to an index of 98.4, and are 5.5 percent higher than December 2008