May 2010 Market Analysis - Pending Home Sales Decrease....

Major drop in market activity for May 2010 – pending home sales (277) for May 2010 have dropped 39% compared to the previous year May 2009 total of 453.

 

The first time buyer tax credit deadline played a huge role in getting the buyers to write offers by the April 30 deadline, thereby pulling a great many number of transactions that would have occurred in May into April.  This created an inflated April number and a very weak May total.  The big question now is - what is going to happen in June 2010?  I believe we will see less buyers this June compared with June 2009 when there were 494 pending home sales.  Look for somewhere in the range of 300-325 sales for the month of June which would still be a decrease from June of 2009, but would still give a 4 month total ahead of last year by about 5%.  Without the stimulus of the tax credit, we would more than likely have seen a decrease in the volume of units sold rather than the 5-7% increase.  

 

Now is still one of the best times to buy a home in the U.S. in the past 7-8 years.  Sold prices are also lower by 3.6% from 2009 and with the record low interest rates – who knows when this combination is going to exist again in the near future. 

 

Whether you are looking to buy or sell in this current market, call John Luca now for a free consultation to see what makes sense for you 302-999-6966.

Download Supply Demand May 2010 John Luca

Download  Months Supply of Inventory May 2010