Austin Area Market Statistics - April 2010 - Tax Credits Drive Pending, Closed Sales
Here's a quick review of the Austin MLS area market statistics for April 2010. The most striking number here is the increase in year to year pending sales. April 2010 saw a drastic rise - over 65% - compared to April one year ago. This is without question related to the expiration of the first time home buyer and existing home buyer tax credits. The tax credits expired on April 30. The month also saw a strong closing rate with over 2,000 homes closing, a 21% increase. It is an indication of buyers taking early advantage of the tax credit and historically low interest rates.
While the number of new home listings increased a healthy amount, I would expect to see the area market maintain a balanced inventory (around 6 months or so). While some niche markets may favor buyers over sellers and vice versa, the area as a whole has maintained a healthy number of listing inventory considering the state of the national home market. Austin continues to lead the way toward a recovering housing market.
I would expect to see the number of pending sales level off to more normal rates during the summer months. We should see a spike in closed sales in both May and June, as the homes that contracted prior to the tax credit deadlines are completed. The big question on many people's mind is whether or not the tax credit will cause a lull in the market. The end of spring and beginning of summer usually see an uptick in market activity. While the numbers on paper may show a drop off, the reality is that the summer market should continue along its normal trend. Talking with other Realtors in the area, it does not seem that buyers have slowed in their searching for a new home.
How the summer months will fare remains to be seen. Informed buyers and sellers are aware that interest rates remain at historical lows with the expectation that they will go up by the end of the year. How much and how soon we do not know. However, the opportunity to buy and/or sell a home is as good in the Austin area as it is anywhere. If you have questions regarding this information, or in general about the area, I encourage you to email me!