USA Resales Selling Fast

Resale property transactions in the USA increased 44.1% year on year in November, according to the National Association of Realtors (NAR).

Sales levels increased 7.4% on the previous month to an annual rate of 6.54 million units sold, the highest figures since February 2007 when the rate hit 6.55 million.

However, despite these large increases the sale of new homes declined 11.3% on the previous month, according to the government Commerce Department.  Some commentators have suggested the difference between new and existing property sales is due to the first-time buyer tax credit, which was due to expire in November but has now been extended until April 2010.

Purchasing a resale takes longer to process than new-home sales and so the increased resale figures reprsent the rush to take advantage of the tax xredit seen in September and October, according to the Wall Street Journal.

First time buyers mad up 51% of purchasers in November, according to NAR.  "This clearly is a rush of first-time buyers not wanting to miss out on the tax credit, but there are many more potential buyers who can enter the market in the months ahead" said NAR chief economist Lawrence Yun.

"We expect a temporary sales drop while buying activity ramps up for another surge in the Spring when buyers take advantage of the expanded tax credit, which hopefully will take us into a self-sustaining market in the second half of 2010".

Source: Overseas Property Professional, December 2009