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October home sales results and what does it mean to  you...

Existing Home Sales Growth

The National Association of Realtors (NAR) reports existing home sales grew again in October making it the seventh straight month of increase in existing home sales. The NAR reports that sales activity in October is at the highest rate of growth since February of 2007. In the Midwest Region (including the Fort Wayne real estate market), existing home sales increased 14.4% in October and are 28.8% above one year ago. The median price in the Midwest was about the same as recent months at $146,600. This growth, as you would expect, is causing a decrease in the inventory of available homes.

Tax Credit Impact

With the original deadline for the initial first time home buyer tax set at the end of November, home sales accelerated to a frenetic pace in many parts of the country. The bad news about this of course is that December and January numbers will likely show a decline before another surge in the spring.

The NAR also believes however that there is pent up demand still out there, especially with the extension of the first-time home buyer credit and the new $6,500 tax credit for current home owners.

Low interest rates also continue to fuel home sales growth as we are seeing some of the lowest mortgage rates since 1971. The national average for a 30-year conventional fixed mortgage fell to 4.95% in October, down from 5.0% in September.

Inventory Decline

As I mentioned previously, the inventory level of available homes (including the Fort Wayne area real estate market) has fallen. The lower end home market appears to be tightening most of all. The supply of these homes is at the lowest level in over 2.5 years. Buyers and sellers in this arena are almost in balance.

Bottom Line for the Fort Wayne Real Estate Market

Now is the time to act if you have been “on the bubble”. While inventories have been shrinking, there are still plenty of homes for now keeping the prices down. Prices will increase as the inventory gets lower as time goes on. Interest rates are still near record lows, but have shown signs of increasing. The federal government is pulling back on investments which keep rate increases in check. Finally, we now have two tax credits which you should take advantage of before April of 2010. The first-time home buyer $8,000 credit was extended and there is the new $6,500 tax credit for current home owners who purchase a new primary residence.

Call me for more information and for details on the tax credits you may qualify for!

Happy Holidays!  Be safe out there!