Home buyers returning to the real estate market

10.25.09
By Timothy Green

Consumers have been increasingly flocking to the real estate market in recent months, driven by improving economic conditions and a popular government tax credit.

The latest figures from the National Association of Realtors show that existing home sales were strong in September, which means that conditions have improved for five of the past six months. Last month, sales were up 9.4 percent from the level recorded in August, and also 9.2 percent higher than the figures recorded in September 2008.

"We're getting early indications of price stabilization, but we need a steady supply of qualified buyers to meaningfully bring inventories down and return us to a period of normal, steady price growth and to fully remove consumer fears, which would then revive the broader economy," said NAR chief economist Lawrence Yun.

Much of the current gains are widely seen as due to the $8,000 tax credit for first-time home buyers, which for months has provided a badly-needed boost to the industry.

However, the credit is set to expire on November 30, and Congress has yet to fully approve an extension, even though the real estate industry and others have been lobbying hard for it to do so.

Elsewhere, a Las Vegas Sun report notes that not all industry professionals are cheered by the improving market conditions.

"Obviously, it is still a strong market. Properties are moving, but they are bank-owned properties that are typically under $150,000. That seems to be our market and will be as long as those properties keep coming on the market. It seems for the time being it will be more of the same until we get through that product," Las Vegas real estate professional Devin Reiss told the newspaper.