Central Texas existing home-sales soared 38 percent in October, as buyers took advantage of a federal tax credit for first-time homeowners.

Though home sales also were up in September, by 6 percent compared to the same month last year, the Austin Board of Realtors said that the region hasn’t had an increase as big as October’s since March 2005, when sales also rose 38 percent.

The board reported that 1,823 homes were sold compared with 1,322 in October 2008. The median price was $182,000, down 5 percent from the previous October.

The tax credit that has been spurring sales locally and nationally was set to expire Nov. 30, but recently was extended through April 30 and a provision was added for a credit of up to $6,500 for qualified move-up and repeat home buyers.

“Sales volume like this is similar to what we saw in 2005, which is an encouraging sign,” said Jay Gohil, chairman of the Austin Board of Realtors. “It’s possible some of this surge in volume was related to the original (Nov. 30) deadline for the first-time homebuyer tax credit, so it’s good for our market that the tax credit was both extended until April and expanded to include more current and prospective homeowners.”

The number of homes listed for sale, 8,947, was down 10 percent from a year ago. And pending sales were up 47 percent, with 1,811 contracts in the pipeline to close.

From January through October, area home sales were down 11 percent, and the median price was down 1 percent, to $189,000, the board reported.

Article by Shonda Novak
Austin American Statesman
Wednesday, November 18, 2009, 03:38 PM