My Real Estate Blog

Resales of houses and condos in April were up by almost 8% - and now are 23% higher than they were the year before.  Sales of newly-constructed homes also soared in April, up 15%. That's 48% higher than April 2009.

Single family median home prices are even up by 4.5% for the year. In the Midwestern states, where the recession has been a lead weight on real estate longer than elsewhere , prices have jumped by 6%.

While these numbers ARE impressive, there is a bit of realism that has to come into view . . . .

Most economists agree that April sales totals, maybe even March, are distorted upwards because of the expiring federal tax credits. Thousands of buyers rushed to complete their contracts in the past two months -- we know that.

But to what extent are the latest sales being "borrowed" from the months ahead? How many people who were going to buy later in 2010 moved up their deals so they could qualify for an $8,000 or $6,500 tax credit?

There's little question that some purchases were accelerated.  The upswing in April sales was expected because of the tax credit inducement, and no doubt there may be some temporary fallback ahead. 

Having said that, I think that not only do consumers have growing confidence in the economy and their own incomes, but home buyers no longer fear further price declines -- and that's a crucial turning point in the cycle.