Maine home sales jump 63 percent in April

Home sales in Maine surged in April as homebuyers rushed to take advantage of record-low mortgage rates and the federal home buyer tax credit.

Sales of existing single-family homes jumped by 63 percent over April 2009. The median sales price increased 3 percent, to more than $165,000.

In all, real estate agents sold 994 homes in Maine in April, up from 610 a year earlier.

Real Estate Optimism

More than 48 percent of first-time buyers expect home prices to increase by this time next year, according to a survey by Century 21 Real Estate.

Sixty percent of first-time home buyers say they didn’t understand the process of buying a home, and more than 85 percent of both first-time buyers and sellers said that using a real estate professional was important.

The top three skills valued in a real estate professional by both buyers and sellers were knowledge of the area, trustworthiness, and responsiveness.

More than 80 percent of buyers believe now is a good time to buy a home. First-time home buyers rated these three factors as the most influential in their decision:

• Current housing prices: 66 percent
• Home Buyer tax credit: 63 percent
• Low loan rates: 60 percent

In choosing a home, 95 percent of first-time home buyers thought price was the most important consideration, but 90 percent were also very concerned about neighborhood safety.

About 54 percent of first-time sellers think home prices are more affordable now than they were this time last year, and 50 percent were selling because they were purchasing a property they saw as more attractive and better suited to their needs.

Source: Century 21 Real Estate LLC (04/21/2010)

Home Sales in the West Surge 17 Percent in March

Home sales surged 17 percent in the West last month, as buyers scrambled to take advantage of low mortgage rates and qualify for tax credits that expire at the end of this month. Nationwide, by contrast, sales of previously occupied homes rose almost 20 percent from March of last year, without adjusting for seasonal factors. The median sales price was flat at $170,700. The U.S. housing sector had another modestly positive showing in March as existing home sales, rose 6.8% to a 5.35 million unit annualized rate, boosted by the extended home buyer tax credit, the National Association of Realtors

Tax Credit Extended

President Obama just signed into law the Tax Credit extension for first time homebuyers and existing homeowners.

First-time homebuyers have been getting tax credits of up to $8,000 since January as part of the economic stimulus package enacted earlier this year. But with the program scheduled to expire at the end of November, the House voted 403-12 Thursday to extend and expand the tax credit to include many buyers who already own homes. The Senate approved the measure Wednesday, and the White House said President Barack Obama would sign it Friday.

Buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500. First-time homebuyers — or anyone who hasn’t owned a home in the last three years — would still get up to $8,000. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30.

California Offers $10,000 If Buy a New Home

The properties in California must close escrow between March 1, 2009, and March 1, 2010.
The homes must be:

* Brand new, single family homes
* Never been occupied
* Be the buyer’s principal residence.

Californians can claim $3,333 per year for three years, beginning with the 2009 tax year. It aims to help new homes compete with the glut of foreclosures.

“Back in 1975, the U.S. Congress enacted a tax credit identical to this one, and it worked. It stimulated sales — doubled sales within a year,” said Tim Coyle, California Building Industry Association.”

The money is coming from a $100 million allocation. Once it is gone it is gone.