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REAL ESTATE NEWS YOU CAN USE
REAL ESTATE NEWS YOU CAN USE
BY: JOEL ESSEX
The local real estate market saw an incredible surge in April 2010. This was most
certainly driven by the tax credit of up to $8000 or 10 % of the purchase price for first time buyers as well as the $6500 or 10 % of the purchase price credit for qualifying prior homeowners. As of the date of this article, New Haven is sitting on its lowest inventory level in several years with 98 homes for sale in the Ft. Wayne area Association’s MLS.
The MLS currently shows 45 homes in pending status. I cannot remember having this many homes in either category for a very long time. Inventories down and sales up, the tax credit did indeed have a positive effect. However, the tax credit expired on April 30, 2010. I do not have any indications it will be renewed, extended or modified. I was hoping the Federal Government would phase this program out through the end of the year, but this is not the case. Stimulating the economy through housing is a good policy, and I would encourage all of you to contact your congressmen and plea with them to restore this tax credit. The impact on our local market did not indicate so much of an improvement over the same period last year in regards to the number of closed sales through April (42 in 2010 vs. 41 in 2009), but the average sale price was a whopping 21% increase!
Take a look at the numbers: The average sale price for the first four months of 2009 was $76,566 compared $96,806 in 2010 for that same period of time. That is the direction we want to see home values heading. Now we did also see a good number of homes go to pending status in April, so it will be interesting to see the closed data on these transactions. I should be able to provide a glimpse of this information next month; however, it could be into the June before many of these transactions are closed.
It will also be interesting to see who will be buying and/or selling after the expiration of the tax credit. Interest rates are projected to creep up into the 6’s which is still very good. Anyone remember the early 80’s? All in all it seems as though our market is trending in a positive direction, and the next few months will be a real indication as to whether or not we can sustain this momentum. I’d like to think this latest activity has not been completely driven by the tax credit, but without a doubt, time will tell. Until next month, happy house hunting.
Joel Essex is Broker-Owner/Principal Broker of Schrader Real Estate and Auction of Ft. Wayne. He has been practicing real estate since 1987. He currently serves as a Director of the Fort Wayne Area Association of Realtors MLS, a member of the associations MLS committee, Real Estate and Homes committee and Grievance committee. He is currently a participant in the Indiana Association of Realtors Leadership Academy.
Joel also serves as the chairman of the entertainment committee for the New Haven Canal Days Festival.
7009 N. River Rd.
Ft. Wayne, IN 46815
260-749-0445
jwsx01@aol.com
www.joelessex.com