Here’s an excerpt of a review of September sales from the Cromford Report, a market analysis service provided to Realtors. Note that AWC stands for Active With Contingency, meaning that an offer has been accepted, but has a contingency such as short sale approval, or the sale of the buyer’s house:
Sales in September (7,926 for all areas & types) were almost as high as August (7,972) thanks to a huge surge (1,232) on the last day. Homes under contract increased 2.7% from 12,188 pending and 6,082 AWC on September 1 to 12,306 pending and 6,456 AWC on October 1. It is clear that it is taking much more time and effort to get contracts closed than in normal times, especially those listings that are active with contingent offers (AWC). On October 1, 2008, one year ago, the number of homes under contract was 6,372 pending and 985 AWC while sales were at 6,064 per month. So sales have risen 31% over last year while sales pending have risen 93% and AWC a staggering 555%. Most of these AWC listings (88%) are short sales awaiting the seller’s lender approval.
So activity has picked up significantly year over year. Most of these sales are in the lower price ranges, generally under $200K. The higher price ranges, particularly over $500K are still very anemic.
A big concern is will this level of activity continue? A factor driving recent sales has been the first time homebuyer’s tax credit. This is currently set to expire on December 1st. Practically speaking, it’s already too late to get this credit if you do not already have a house under contract.
There is speculation that the credit will be extended, but there is still a long ways to go before any proposal under debate in Congress, if at all, makes to final approval by the President.
The latest and apparently most promising proposal extends the credit to April 2010, and includes existing homeowners that have owned their home for at least 5 years, although with a lower credit amount. It also raises the income level to $125,000 for a single buyer, $225,000 for couples. Again, this is not final, and any proposal may change.
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