Jeff Adams

First Time Homebuyers are Seizing the Opportunity



Posted: Monday, November 09, 2009

by
RealEstateWebProfits.com

During the month of September, there was some increased activity in home sales through out the entire country. Some regions more than others, but there was an increase nonetheless. One of the reasons as to these improved market conditions can be greatly be attributed to first time homebuyers.

Existing home sales were strong due to these first time home buyers being the driving force behind them. According to the National Association of Realtors (NAR), existing home sales have been on a steady incline for the past six months.

Recent statistics show that sales activity of existing homes is at the highest it has been in well over two years. These homes include single-family homes, townhomes, condominiums, and co-ops. Sales for these homes increased to 5.57% in Spetember 2009, which is 9.4% higher when compared to the seasonally adjusted annual rate of 5.09% million units sold in August 2009. This many not seem like a substantial amount of increase, but when compared to the same time last year, there is a 9.2% increase.

Homes located in the Northeast were said to have the greatest amount of sales activity in September 2009. There was 4.4% increase in these homes sales which was 11.8% greater than sales during September 2008. This was largely due to massive price reductions. Homes have been noted to be priced about 7.0% lower than they were during the same time last year.

Homes sales in the Southern regions of the country rose 9.0% in September of this year which is 10.8% higher than those during September of last year. The median price of homes also have been drastically reduced by about 7.6% over the past year in order to accommodate the state of the current economy.

In the Midwest , the price of homes was not reduced as much as in the North and South, but homes sold for 1.0% below what they sold for during the same time last year. Existing home sales in this region increased 9.6% which is 7.8% above what was recorded in September 2008.

In addition to the increase in home price reductions, the first-time home buyer tax credit that was offered this year is another reason why home sales have greatly increased. Some speculate that due to the deadline to this tax credit is severely approaching, home sales with continue to increase during the month of November.

There have been movements hoping to extend this tax credit for a prolonged period of time and also expand it in order to make it available to more buyers, but whether or not this will actually happen remains to be seen. In the meantime, first-time home buyers are taking advantage of the current real estate market and seizing the opportunity to become official home owners.

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