Real Estate Information Archive

Charlotte-area home sales experienced the biggest gain of 2010 in the month of April as usual spring buying was aided by the expiring home buyer tax credits.

The 2220 single-family homes and condos sold last month marked an increase of more than 25% compared with April 2009, according to results released by the Charlotte Regional Realtor Association.

That represented seven consecutive months of year-over-year increases and the largest increase since November 2009, when buyers rushed to close before the original expiration date of the tax credits. The credits were then extended until this April 30.

April’s sales also inched above 2003 levels, the first time that’s happened since the downturn walloped the housing market. Still, the number of deals remained below the 2004 count and well off the 2006 peak.

In another upside sign, sales in April posted the biggest jump from March in at least 8 years. That 17% monthly gain, following an even larger jump in March, is likely due mostly to the tax credit although there have been modest signs of economic recovery.

A 32% jump in pending contracts signals that tax-credit induced buying will continue fueling closings for another month or so. Pendings are signed deals that haven’t yet closed, and the 2988 contracts in April mark the highest number since the spring of 2008, just before the worst of the financial meltdown.

Tax credit deals had to be signed by April 30, but buyers have until June 30 for the final closing.

Pricing remained soft, with the average sales price of $201,410 essentially unchanged from a year ago. The gap between sellers’ asking prices and actual sales prices remained above 10%, about double the highest level before the downturn. That indicates sellers continue having to cut prices.

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Sales of new homes likely rose in June to the highest level in four months, adding to evidence the housing slump that began in 2005 is stabilizing, economists said ahead of a government report today.

Sales increased 2.9% to a 352,000 level, according to the median forecast of 60 economists. Purchases reached a record-low 329,000 level in January 2009.

Falling prices and near record-low mortgage rates have started to lure buyers even as the unemployment rate rises. The worst recession in five decades may end in coming months as the housing and manufacturing downturns ease. Use Charlotte home values to connect with a knowledgeable listing agent and find out what your property should list for.

Home demand is stabilizing which is not surprising given the improvement in Charlotte home affordability. Home sales are likely to pick up from here. Estimates are for a further sequential increase in sales to the 350,000 to 377,000 range.

New-home sales have risen in two of the four months since the January low. Other reports underscore the stabilization in housing. The Wells Fargo/National Association of Homebuilders sentiment index has risen in five of the past six months and existing home sales have increased for three months in a row.