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Atlanta Existing Home Sales Jump in April - 2010-05-30
ATLANTA EXISTING HOME SALES JUMP IN APRIL

Finally we get a little good news on the home selling front: existing home sales rose in April, both nationally and in the South. That means if you are trying to sell your home, you may have had more than tire-kickers visiting recently. The surge in sales was not completely unexpected. We can identify several likely causes:

* The Federal Home Buyers Tax Credit for both first-time buyers and repeat buyers came to a much-publicized end, and there were many last minute contracts  hoping to cash in on the tax free incentive. So long as the buyer otherwise qualified and had a binding contract by midnight on April 30, they can still get the credit provided they close on the contract no later than June 30.

Congressional housing advocates like Georgia Senator Johnny Isakson announced the end of this program some time ago, and made it clear that another extension was unlikely. This deadline fueled sales during April, as last-minute buyers hoped to cash in on the free money.

* Some sellers took the end-of-month deadline as an opportunity to sweeten the deal and make their home offering even more attractive. Fearing that they might net even less after the incentive expired, some sellers lowered prices even more than they previously had, hoping to snag a sale. Others agreed to pay closing costs or other fees in exchange for a sale. Clearly, some were successful.

* April is traditionally one of the strongest selling months for residential real estate in the southern US. The weather becomes pleasant, and the days start getting longer, allowing favorable evening showings. The dogwoods begin blooming, and home-buying activity picks up.

and finally

* Long term interest rates have remained at historically low levels, rewarding borrowers with lower carrying costs month after month. Thirty year fixed rate loans continue to be available around five percent, with fifteen year programs about a half a percent less. Economists have been predicting higher rates by year-end, but we have not yet seen the beginnings of any climb.

Existing home sales include detached single-family homes, townhouses, condominiums and co-ops. Nationally, sales rose 7.6 percent to a seasonally adjusted annual rate of 5.77 million, while sales in the south rose 8.6 percent and were up 23 percent from a year earlier.

As the law of supply and demand dictates, higher sales resulted in higher prices as well. Metro Atlanta existing single family homes increased in median selling price to $120,800 from a March number of $113,600, according to the report from the National Association of Realtors.

It remains to be seen whether Georgia buyers will continue to show interest now that the tax credit is no longer available. Only time will tell.
 
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