Updated: August 11. 2010 1:00AM Metro Detroit home sales plunge in July Expiring tax break, shrinking inventory spur 19.4% slide
Louis Aguilar / The Detroit News Sales of homes and condominiums in Metro Detroit dropped 19.4 percent last month as the end of the federal homebuyer tax credit and other factors took their toll, Realcomp II Ltd. reported Tuesday. Purchases of existing homes declined to 4,164 in July from 5,164 a year ago in the region, which includes Livingston, Macomb, Oakland and Wayne counties, the Farmington Hills real estate information company said. For the first half of the year, Metro Detroit sales were flat. Homebuyers had an April 30 deadline for contract signings to be eligible for the federal tax credit, which was as high as $8,000 for first-time homebuyers. Congress then extended the deadline, requiring that those sales must close by Sept. 30 to get the tax break. Advertisement While the end of the home tax credit played a role in July's sales slump, another factor is that the inventory of Metro Detroit houses has declined 21.3 percent from a year ago, said Darralyn Bowers, Realcomp's treasurer and broker/owner of Bowers & Associates in Southfield. Oakland, Macomb and Livingston counties registered double-digit sales increases through the first six months of the year, but their sales dropped in July. Wayne County continued its pattern this year of depressed home sales by posting a 25 percent decrease last month. Although lower sales aren't necessarily good, they do lead to higher home values, Bowers said. The median purchase price in the region rose 19.4 percent to $71,665 from July 2009, according to Realcomp. The sales price soared 58.5 percent for Metro Detroit during the first half of 2010. The granting of more loan modifications on mortgages also is affecting the market, Bowers said. "We're finally getting fewer foreclosures coming on to the market," she said. Bank-owned properties had been a driving force in the Metro Detroit housing market, Bowers said, but "I think it is abating to some extent." Foreclosure sales were down 41.3 percent compared with July 2009 to 1,731, while nonforeclosure sales were up 9.8 percent to 2,433. [email protected] (313) 222-2760 >From The Detroit News: http://www.detnews.com/article/20100811/BIZ/8110328/Metro-Detroit-home-sales-plunge-in-July#ixzz0wIcCA7LF _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
