Blog, Market

Market Update on Economy

Pending home sales for the month of March 2010 increased 5.3% from the previous month to 102.9.  The March 2010 is 21.1% higher than March 2009 which was 85.0.  The data is provided by the National Realtors Association and is for homes under contract - not closed. Definitely the increase is in part to the end of the buyer tax credit (must be under contract by April 30, 2010 and closed by end of June 2010).   According to Lawrence Yun, the NAR's chief economist, "Clearly the home buyer tax credit has helped stabilized the market.  In the months immediately following the expiration of the tax credit, we expect measurably lower sales.  Later in the second half of the year and into 2011, home sales will likely become self-sustaining if the economy can add jobs at a respectable pace, and from a return of buyer demand as they see ome values stablizing." From my persepective - yes - we will probably see a slow down in under contracts and sales after April 30th but many Atlanta buyers are out there.   They want to buy even if they didn't get the tax credit.   Home prices seem to be stabilizing in areas (still early but the numbers are showing some improvements), and loans are becoming readily available in the jumbo market (loans over $417,000) as banks' begin to show healthy balance sheets.  Buyers want great deals and sellers are understanding this and working to price their homes right for the current market.  I am talking to buyers who still want to buy! In Metro Atlanta - we are starting to see a slight reduction in the unemployment rate which is a lagging indicator of the economy.  The unemployment rate will follow other improvements in the economy - such as the increase in the pending sales numbers.   The good news is that March 2010 the unemployment rate dropped for the Metro Altanta area.