According to RealComp, our local MLS, the market activity trend reflected a 15% increase in activity over the same period last year for the seventh straight month in 2008. Additionally, Pending sales were up significantly over the same period in 2007.
While interest rates have remained low, values have continued to trend downward. The good news is there were more private owner sales in July than foreclosure sales. Also fewer homes are on the market this year than in 2007 reflecting the fact that many people are sitting tight if they don't need to sell.While the news has been dominated by Olympic coverage, reports about legislation affecting real estate have also commanded a lot of attention.
In summary, The American Housing Rescue and Foreclosure Prevention Act includes provisions to help homeowners keep their homes.Additionally, it provides a tax credit of up to a $7,500 (10% of the purchase price) for first time home buyers. Effectively, it's a 15-year no interest loan with payments of $500 per year.
Bottom line...it's a great market for buyers!