March has shown to be a very good month for Residential Real Estate. Based on the government data provided by the Census Bureau, new home sales spiked 26.9% in March from the previous month. This number has exceeded and beat all analyst expectations. March 2010 was the biggest month over month gain in new home sales in the past 47 years as reported by CNN-Money.com.
The question remains whether or not this kind of growth is sustainable in today’s ever so tight lending market, weak job market and the current economic conditions in the US.
In November of 2009 the US government has extended the tax credit of $8000, allowing certain repeat home buyers to quality for $6500 credit. This tax credit is due to expire on April 30, 2010, and can potentially effect this positive trend in home sales.
With so many factors that determine the stability and movement in the real estate market, this 26.9% increase does not paint the entire story. Sellers and buyers should always consider the state they live in, down to the city, the community and in some cases even the street. As they say “LOCATION, LOCATION, LOCATION”. The price bracket which the home falls under as well as the type of buyers and sellers it will attract, all these factors play a role. If you are looking to sell or purchase a home look at the data specific to your area, this will be a more accurate indicator of the real estate trends that will effect your transaction. Real Estate is not black or white, but is oh so colorful and ever changing.