Tuesday, May 5, 2009

More People Buying

94501 Real Estate gave you the good news for the local Alameda market yesterday at the same time there was another glimmer of a recovery as the National Association of Realtors reported the volume of signed contracts for March to buy previously occupied homes rose for the second month in a row.

So we got two months of people buying.

Homebuyers and investors are taking advantage of bargain prices, low interest rates and a tax credit that have resulted in a uptick of contract writing and purchases. Locally in Alameda we have seen very small gains and April showed a nice gain, but it is way off compared to 2008 and not even close to the number of transactions we saw from 2004-2007.

The news is not all good. Home prices are expected to keep falling for at least another year, though at a slowing pace and there are thousands of homes still in the foreclosure process and not yet on the market. If job losses continue it may keep many buyers from signing a contract for a home.

The Realtors estimate about half of existing home sales are now foreclosures and other must-sell transactions. Nevertheless, many real estate agents are counting on an $8,000 tax credit for first-time homebuyers as their best hope for boosting flagging sales. That incentive was included in the economic stimulus package passed earlier this year.

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1 comment:

  1. Homeownership seems more expensive, but it’s cheaper once you calculate the tax benefits. Buying is cheaper than renting; purchasing a home builds equity, which is a form of savings. Using the right metrics based on the regular analysis gives an exact picture which can help make better Home buying decisions.