Business

In recent months U.S. home sales have outpaced economists’ expectations, as a combination of low interest rates, tax incentives and affordable pricing have lead to an increase in demand.

Many Americans are taking advantage of the first time home buyers’ tax credit. About 1.4 million first time homebuyers qualified through August for the credit of up to $8,000 towards the purchase price of a home. The National Association of Realtors estimates that at least 350,000 of new homeowners would not have purchased without the credit.

“The data on the present home buyer tax credit shows the credit has had its intended impact—sales have jumped in recent months to a projected 5.1 million for the year and housing inventory has been trimmed, thus stabilizing home prices noticeably,” NAR Vice President Ron Phipps said last month in addressing a Senate Committee.

Due to the success of the program, and pressure from constituents and industry leaders, the Senate voted to extend the program beyond its original November 30 deadline and expand it to include more than just first time buyers.
Stimulus programs to provide tax incentives and keep interest rates low through government backed loans have created a mini-boom in the housing market and local realtors are feeling the impact.

“There is a shift in the market and it is going upward,” said Theautry Green, owner of Green Group Realtors of the Carolinas. Green said his company has seen a tremendous surge in calls over the past few months and he hopes the industry continues to move forward.

Whether it will or not, still remains to be seen. A major indicator may be what happens in the job market. Buyers are less likely to enter into a 30 year debt when they have little security that they will still be employed in the next six months to a year.

Some economist are predicting that after the stimulus programs end, the market will decline before it gets better and others say the worst days are behind us.

Green said that in spite of what economists say, he remains optimistic.

He said that although the industry is not doing as well as it was 18 months ago, it is going in the right direction and is much better than it was just months ago. Sales have increased and inventory is down. The number of days houses remain on the market is decreasing as demand goes up.

Maiya Keeling, 27, of Virginia is in the market for her first home, and has been looking at homes in various communities around the city. She and her husband plan to relocate here after completing five years each of active duty with the military.
Keeling went to high school here and has family in the area. She believes the city will be a great place to raise her family and for her husband to further his career in law enforcement.

In addition to being close to her family, Keeling likes the sense of community and diversity that Charlotte has to offer.
“You can find every race and every culture here,” she said. “It’s a growing city. You can find the things that you can find a big city and there are remote areas you can go to where if you want more of a rural, small town feel you can get that too.”

She said the affordability of homes in Charlotte is another contributing factor in her decision to move here. “Virginia prices are so out of reach compared to what Charlotte homes are,” she said.

Green said now is definitely an optimal time to buy. “It’s a buyer’s market, and it’s pretty much been that way for a good year now,” he said.

Overall housing prices are down significantly due in part to foreclosures and short sales. People are selling their homes for a number of reasons, and in a strained economy they are more willing to sale for less than the asking price and take a loss.

Green also encourages potential buyers to not only take advantage of the first time buyer program, but to educate themselves on the availability of additional funds and loan programs they can help them purchase a home.

There are many organizations and banking institutions that offer assistance to first time buyers, families on fixed incomes and those with certain blemishes on their credit that can be “forgiven.”

“There are a lot of programs that people may not be aware that they qualify for and they should contact a professional realtor because depending on their situation there may be money out there for them that they don’t even know about,” he said.

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