As expected, the number of closed sales and the median sale price of homes are down year-over-year (March 2011 vs. March 2010). It is likely we'll report larger percentage decreases in those measures next month. Neither is particularly concerning to REALTORS® because of the April 30th federal home buyer tax credit deadline that pulled sales forward last year.
REALTORS® have advised consumers for awhile now to review housing data in the long-term until the impact of the tax credit recedes. While the impact won't be as great after April, those who took advantage of the credit had until September 30, 2010, to close their transaction. This means that October 2012 is the soonest a true year-over-year comparison can be made.
Until then, pay most attention to the historical graphs for each indicator or measure of the statewide housing market - you will see stability. Add that to continued low, but rising, interest rates, and qualified buyers couldn't ask for a much better time.
Stability won't turn into growth without consumer confidence, so we're watching jobs numbers and unemployment claims closely, both of which are headed in the right direction. We're also watching - and advocating for changes to the mortgage industry that will ensure access to adequate mortgage capital for qualified buyers.
