May 30, 2010
May 2010 provided our first month of data after an extensive 18-month tax credit party. And the hangover has apparently set in. The tax credit clearly propped up sales, so they predictably took a substantial dip a month after it expired. Pending Sales decreased 26.8 percent compared to last May to 1,598 purchase agreements signed. Keep in mind that closed sales will remain strong through the end of June as buyers wrap up before the June 30 closing date deadline. In fact, there were 2,163 Closed Sales, up 15.8 percent over last year at this time.
New Listings posted a slight decrease to 3,463 new homes on the market, representing a 0.4 percent year-over-year decrease. This left 13,787 Total Active Listings for sale at month’s end.
As expected, Median Sales Price did post a slight 1.1 percent decrease over the same period last year, landing at $188,000. We anticipate prices remaining relatively soft due to the displaced demand effect.
It still remains to be seen whether the dip in buyer activity is a short- term effect of the credit deadline passing or a result of long-term changes in demand. Regardless, we expect a slowed summer selling season.
About Ed Neuhaus
Broker and founder of Neuhaus Realty Group. I started working in real estate as soon as I could push a lawnmower and help clean up investment properties for my parents. Investing in real estate has always been a passion and now I have turned that passion into a way to help others. Buying and selling homes for others is just one way I think I can make the world better. No sales pressure, no gimmicks, just an honest work ethic gets the job done. Let me know how I can help you. Give me a call today at 512.366.3720
