Posted by: Larry Stevens | May 27, 2010

April Home Sale Rush!

Thanks for stopping in to read my Boise Realtor blog! One of the best ways to stay in touch with my clients and share important real estate news is through this online portal. It plays just a small part in my overall Boise Realtor services that I provide online . In this entry we will go over the recent home sales statistics for April, the numbers and what they mean to the real estate market as a whole. Let’s get right into the latest:

Sales of newly built homes soared in April as buyers rushed to take advantage of the expiring federal tax credit.The Commerce Department said Wednesday that sales of new single-family homes rose 14.8% from the prior month to a seasonally adjusted annual rate of 504,000.

Demand for new homes had also surged in March, when sales climbed 29.9% from the prior month. Sales in April were 47.8% higher than a year earlier. This is GREAT news for real estate as the “hot” months for home sales are just getting started.

Very likely the recent surge in home sales is the result of expiring government incentives, which provided an $8,000 tax credit for first-time buyers and a $6,500 credit for repeat homeowners.

Contracts for those homes had to be signed by April 30. Buyers have to complete purchases by June 30.This bright light shows that the housing market is stabilizing after both sales and prices plummeted during the recession. Sales of existing homes, a far bigger number than newly built homes, jumped 7.6% in April, the National Association of Realtors said earlier this week.

Good news for the construction industry as well as sales of new homes are also picking up. Starts for single-family homes rose 10.2% in April from March, the fourth-straight monthly rise, Commerce said earlier this month.

Some economists say the April tax-credit deadline spiked many sales that may not have been made without the tax credit. Some worry that could cause home sales to sag in coming months, but generally these Spring months are just the beginning of an upward rise in sales which trends to increase into the early Winter months.

The increase in sales brought the backlog of new homes down to five months, based on the current rate of sales, from 6.2 months in March.The median price of a new home fell to $198,400 last month from $219,600 in March, which is aslo likely influenced by the tax credit.

Even without the federal tax incentives there has never been a better time to buy a home in Idaho than right now. Mortgage rates and prices are still at historic low levels and whether you are simply looking for a great home in Boise or wanting to invest in Idaho real estate – now is the time! AA Realtors Boise can help you find the homes and properties that fit your needs quickly and easily.  We can help you make your next move the right one!

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