Although March saw a slowing in existing home sales, low mortgage rates and tax credits are drawing first time buyers into the market according the National Association of Realtors.
NAR chief economist, Lawrence Yun, indicated that with the modest ups and downs recently seen in the market, it appears to be stabilizing. “The share of lower priced home sales has trended up, indicating a return of many first-time home buyers, which we also see in a parallel member survey”, he said. “Sales in the upper price ranges have stalled because of higher interest rates on jumbo loans.”
March ’09 saw a rise in home prices, with the national median existing-home price for all types of properties at $175,000, although it is down 12.4% from March 2008. But, the increase in March was 4.2%, which is more than double the 1.8% seasonal increase usually seen at this time. Over half the March transactions were distressed properties which typically sell for 20% less than traditional homes.
The March survey conducted by NAR of its practioners indicated 53% of transactions were first-time buyers. Yun said “buyer traffic has been rising, and real estate offices are getting phone inquires about the tax credit.” “By early summer we should be seeing a positive impact on home sales from record low mortgage rates in addition to the stimulus provisions.”
The Midwest region has fared better than the other regions in the country. March’s median price was $141,300, a drop of 6.1% from a year ago, compared to an 18.4% drop in the Northeast, 12.2% in the South, and 11.1% in the West.
At InSight Mortgage Group we can provide you with clear, concise information on the $8,000 first-time buyer tax credit, in addition to finding you the right loan program to fit your specific needs. Call us at 913-642-3334 or email me at firstname.lastname@example.org. We look forward to working with you. Blessings.