Foreclosures Add to the Increasing Trend of Home Sales

Home buyers trying their best to qualify to get a irregular tax credit added to the increment of sales of homes in the Western part of the country. During August this figure was almost 5% greater than last year’s figure. The situations have been aggravated due to the foreclosures in California, Arizona and Nevada. The National Association of Realtors feels that this also helped to pull down the average price of the homes in a region more than 12%. Nationally this figure came down to almost 13%.

Celia Chen, the senior director at Moody’s Economy.com, observes that, “The story in the West is still very much one of foreclosure sales occurring. Prices have fallen so much in the West that I think that’s also encouraging some buyers — both investors and those who intend to actually live in their units — to come back into the market.”

The sales in West went up by 1% since July. That went against the trend in the nation due to which the sales fell to 6.2% since July to August. There were improved sales in numerous Western metros in August

The Associated Press-Re/Max Monthly Housing Report Several of the largest Western metros saw improved sales last month. There was an increase in the sales figures of Phoenix, Los Angeles, Las Vegas, Boise, Idaho, and San Diego. On the other hand Denver, Seattle, Billings, Mont., San Francisco, Honolulu, Anchorage, Alaska, and Albuquerque, N.M., faced a fall in the sales in August compared to the last year.

Numerous buyers buying homes in August were primarily first-time buyers who were too eager to strike a deal prior to Nov. 30, and the deadline for qualifying to earn a tax credit of at least $8,000. The dealing process might take more than a months time.

Floyd Scott, the broker-owner of Century 21 Arizona-Foothills in Phoenix observed that, “Some of them are getting a little freaked out about finding a house to get the tax credit.”

In Phoenix the sales increased by 44% and above as compared to last year’s record. The average price of sales in the mean time fell to 32% resulting to $125,000. At least a quarter of them were fresh buyers and another 20% were investors. Scott assumes that the sales figures in September will be greater than August. The number of days to keep a home in a market fell in July compared to August in San Francisco, Los Angeles, San Diego, Phoenix, Denver and Seattle including Western metros.

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