Federal programs designed to jump start the housing market helped boost sales of previously owned homes to their highest level since February 2007 and whittle down the excess supply of homes on the market in November.The National Association of Realtors (NAR) announced that national home sales activity hit an annually-adjusted 6.54 million units in November, the highest level since February 2007 when activity hovered around 6.55 million units. Sales were up 44 percent from a year ago, the highest annual gain since the group started tracking the data in 1999.
NAR spokesperson Lawrence Yun said in a statement that the tax credit was a driving force:
“This clearly is a rush of first-time buyers not wanting to miss out on the tax credit, but there are many more potential buyers who can enter the market in the months ahead.”
While Yun also noted that this sales pace will drop off when sales are analyzed in December and the beginning of January, he said that a surge will likely return early next year as buyers try to buy before the tax credit expires at the end of April.
Clearly, the tax credit and the feds meddling in the mortgage market has helped add an extra kicker to home sales in the short term. As housing prices fall, home ownership becomes competitive with renting, and buyers start to come out of the woodwork.
While we all know that real estate is local but our market here in Williamsburg is heavily influenced by national trends. Quite a few of the buyers I work with need to sell their current homes in other areas before they can move here.
Here’s hoping that the trend continues…..
Filed under: real estate, virginia, williamsburg va
