Existing-home sales fell as expected in December after first-time buyers rushed to complete deals during the months leading up to the original November deadline for the tax credit. However, prices rose from December 2008 and annual sales improved in 2009, according to the National Association of REALTORS®
For the past several years there has been a lot of talk about where the "bottom" of the market is. In my interpretation, it may have been in November. This week NAR published data, quoted above, that shows prices beginning to rise. It is true that activity went down in December, but I personally see that as a result of the extension of the tax credit and the lessening of the urgency to buy and close before December.
As the year turned, activity also seemed to pick up. A few good signs in the economy, low interest rates and the tax credit have gotten people who were on the fence and waiting to buy into the game. Right now prices are still low but as seller start to feel better about the activity in the market there is no doubt they will begin to hold their line on prices, even opting to price them a bit higher.
Sure a downturn in the economy could slow things down again, and if you are unsure about your financial condition you should proceed with caution but signs seem to indicate that the worst in the residential market may be behind us.
Buying or Selling a home in Pittsburgh? Call Christa Ross from RE/MAX Select Realty, at 724-933-6300 x214 (office) or 724-309-1758 (direct) or visit my website at www.bestpittsburghhomes.com.
