Market Updates

By Larry Schottenstein on June 24, 2010

Locally the real estate activity for May was up significantly, 33% over May of 2009. Certainly the tax credit program had a great deal to do with this.  The average sales price is now 5% higher then a year ago. The real issue is what this means and what will happen in the future. Last year many of my clients were holding off buying because they kept thinking the market would continue to drop.  The tax credit is a good thing but the benefit is not large enough to erase any doubts about the market decreasing.  If a  buyer thinks real estate prices will continue to drop will not buy a house just because of the tax credit. But if they are thinking we are near the bottom and are confident about buying then the credit may move them ahead of schedule. I think the tax credit helped the fence sitters decide to buy now and not later in the year.  This means there  will be a drop off this summer. It didn’t fix the market but it did help move things along quicker. The significant  increase in sales is mostly due to basic real estate economics.

1. Great deal on homes and buying opportunities

2. Great rates and the ability to lock in very low rates for 30 years fixed and not just adjustable

3. An improving economic climate.

All this translates into improved confidence in real estate as an investment, which is why sales are up.