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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