The national average interest rate on a 30-year fixed mortgage is an astonshing 4.29%. Many buyers were obviously motivated by the tax credits last year and unfortunately the record-low interest rates get overshadowed. Are these rates a better benefit to make the decision to buy now if you are considering purchasing a home? Well let’s do the math and you’ll see that the truth is that these rates are the better benefit.
Like the rest of the country, Flagler County and Palm Coast saw a dip in the number of home sale closing in July to the tune of about 28%. 103 homes closed in July of this year compared to 142 in July of 2009. Year to date, the area still remains 7% above last year through August 25th in terms of the number of home sales. August through 8/25/10 has seen 82 closings and is slightly below the same period in August last year when 94 homes closed.
Recently the Flagler County Association of Realtors began transitioning over to Sentrilock lockboxes. These lockboxes add far greater security and peace of mind for sellers.
The common question today is how is ‘the market’ now that the tax credit for new contracts has expired? Remember to qualify for the tax credit the buyer must have signed the contract by April 30, 2010 and closed by June 10, 2010 with the closing date date extended now to accomodate short sales. Since most sales will close within 30 days, May was a real focus as an indicator of the impact of the tax credit and June to a point. So how is the market? Still holding strong in the area. Let’s take a look at the Palm Coast Residential Home statistics:
Many (including myself) had been wondering what effect the expiration of the Home Buyer Tax Credit Program would have on local sales. In all honesty, I had expected to see a drop compared to the year before this month (May 2010). I am pleased to see that performance remains strong in the area. The number […]
Through April of this year, the number of Flagler County residential homes sold has risen 17% compared to the same period in 2009. This period in 2009 saw 378 homes sold with 2010 seeing 442. 83% of those sales were up to $209,000 compared to 81% in 2009. Median price during these periods saw a decline 7% which was driven by the increase in the rise in the number of lower priced homes being sold. See the price bracket breakdown below.
For buyers searching for their next home, we are in the final stretch to take advantage of the Home Buyer Tax Credit. To qualify for this credit, the contract must be signed by April 30th and close by June 30th or this year. It’s important to understand that an offer made by April 30th does not qualify. The offer must be accepted and signed off on (creating an binding sales contract) by April 30th.
This morning I looked at the front page of an area newspaper, The Daytona Beach News Journal, and saw the top headline “Home-Sales Pace Cools Off”. Just below the headline and to the left were the number of sales of homes in Volusia and Flagler Counties for December 2009 & January 2010 with January being lower. So I’m thinking . . . so? January is always a lower month in terms of the number of sales with December often peaking up just before the end of the tax year.
I am often asked what I think will happen over the next year in Real Estate in the area. We all wish we had a crystal ball to see into the future. This is especially true in the Real Estate word over the last few years. The only thing we can do is look at the data, activities, and trends to get a perspective on the upcoming year. My outlook based upon these areas is very positive for the area when it comes to residential home sales.
At the beginning of this year I had said it would be an interesting year for Real Estate in the area. It’s no secret that Real Estate has had it’s challenges in the area over the last few years, but this year has shown some great positives.