Of course, last Friday was the long anticipated deadline of the home buyer tax credits. While it did cause last minute deals to hurry in and reportedly boosted monthly sales 5.3 percent in March, the results were far less significant than many anticipated. We think this is good news, as it shows the tax credit was not the only thing driving the market. According to a recent survey we conducted through a third-party, only 39% of those looking for a home had plans to take advantage of one of the tax credits, citing that affordable mortgage rates and lower prices were driving their decision to look. Regardless, NAR predicts sales will rise by 4.3 percent this year over 2009.
In other good news, although it is not directly tied to real estate, manufacturing showed signs of a rebound. The strength in this industry highlights a larger sign of economic recovery and increased consumer confidence. Great news!
This week was not without sobering news, though, as Freddie Mac requested an additional $10.6 billion in Treasury Department aid after reporting a first quarter loss of $6.7 billion. Both Freddie Mac and Fannie Mae, however, are looking to ease lending restrictions in the Sunshine State, which should help many Floridians and their communities who’ve felt the effects of the downturn.
To end the week on some good news, home inventory in 27 major metropolitan cities across the country rose 2.6 percent in April. This increase is a definite sign that demand is starting to shift.
Finally, for all of you mothers, Happy Mothers Day!