Down, up, down and up again.
Real estate is a roller coaster right now — you never know what’s going to happen from month-to-month on a consistent basis.
Today, National Association of Realtors® released its latest report, indicating that pending sales on existing homes unexpectedly rose 1 percent in Dec. 2009 compared to the previous month.
Lawrence Yun, a NAR economist, attributes the volatility to the tax credits ($8,000 for first timers and $6,500 for existing) currently available to homeowners/buyers.
Here’s a snip:
“There are easily understood swings in contract activity as buyers respond to a tax credit that was expiring and was then extended and expanded. These swings are masking the underlying trend, which is a broad improvement over year-ago levels.”
The $8,000 tax credit, which was originally set to expire on Nov. 30, 2009, was recently extended to April 30, 2010. Additionally, a $6,500 tax credit was introduced for existing homeowners who want to sell their properties purchase new homes.
It’s good news, clearly, that the market has at least leveled off (for now, anyway) and that it isn’t getting worse. In fact, Yun predicts that existing-home sales will rise to around 5.6 million in 2010.
If that’s the case then you better start your search sooner rather than later … you don’t want someone else moving into your potential dream home because you think time is on your side.
Play it safe and don’t get greedy — act now before it’s too late.
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