I’m finally getting around to crunching those stats that I previously mentioned. Let’s take a look at how the numbers shook out and see if the Bay County market really recognized any significant benefit from the $8k home buyer tax credit.
For purposes of this analysis, the data shown herein is based on the following single family categories sold through the Bay County MLS system excluding condominiums. This would include:
- Attached single family properties
- Detached single family properties
- Manufactured housing
The condo data is not considered as many of these units would fall under the second home category.
The data indicates sales were flat during the 1st quarter of the year compared to 2009 with a run up of sales in April. This was to be expected based on the termination date of April 30th for the tax credit. Positive ground was gained based on the sales flurry of the last month of the program.
The data further indicates:
- the median sales price continues to decline contrasting prior periods
- a 16% drop in inventory is noted at the end of the tax credit period compared to the prior 12 month period.
Another factor to consider in the analysis would be the pending contracts executed by April 30th that fall under the program guidelines that have not closed as of this writing. To establish a trend versus the one month ending period only, I have reviewed the data for the beginning 4 month period in 2009 compared to the same period in 2010.
- sales contracts (pending transactions) increased some 13.7% in 2010 contrasted to pending transactions from 2009.
- median price declined -9.4%
In summation, the flurry of activity in April certainly shed some positive light on the residential sector, although pricing continues to correct from prior periods. One of the most promising indicators I see at this time is the reduction of the standing inventory. The excess supply of residential properties has to be reduced in order to establish any recovery in this market.
How has the program affected your area ?
