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Numbers Show Promise Until Tax Incentive Ends

RE/MAX’s monthly housing report for the month of August has been released and shows promising figures over the next few months for the housing industry.

Home sales, also known as transactions, decreased by 0.5 percent from July, and overall home sales for the month of August 2010 were 17.9 percent lower than August 2009.

However, the report suggested that transactions should jump in September due to the September 30 closing deadline for homebuyers to receive the last of the homebuyer’s tax credit.

 “The summer’s market is still recovering from the number of buyers who bought earlier to take advantage of the tax credit,” said RE/MAX CEO Margaret Kelly. “It may take a couple months to regain its footing, but we are expecting an increase in sales for September as the final deadline for the tax credit nears, and we’re very pleased that prices are holding steady.”

Home prices have remained stable in August.  There was a slight decrease of 1.7 percent from July, however home prices have increased by 1.3 percent from August 2009.

“If inventory levels can remain stable, prices should continue to rise for the next few months,” the report stated.

Unlike national trends, median home prices in Utah have steadily dropped over the last year, at a high of $216,000 during2007 to $190,000 in the second quarter of 2010, according to the Wasatch Front Regional Multiple Listing Service (WFRMLS).

Additionally, home sales have increased by 65 percent from the first quarter of 2010 to the second. Home sales were at 5,437 during the first quarter and at the end of the second quarter, were up to 8,266.