There have been news reports recently that home sales across the country dropped off significantly from Nov 09 to Dec 09, but we looked at the year-over-year trends and found that home sales in Forsyth County for the 4th qtr. of 2009 were up 23.4% over 4th qtr 2008. There are several factors that are contributing to those increased sales, first of which is the first-time homebuyer tax credit. Originally set to expire at the end of November, many buyers pushed to purchase a home before that date. Now that the tax credit has been extended, and expanded to move-up buyers, we should see more activity than normal during the first qtr of 2010.

In addition to the tax credit I’ve noticed the start of a shift in consumer confidence in some sellers. We are working with quite a few who have been in their homes for a number of years and don’t need to sell but feel that if they are going to take advantage of this buyers market, now would be the time as these deals may not be around in another 12 months. I agree with them. We have a long road out, it won’t change overnight, but there are some green shoots of recovery that will take stronger hold as we move further into the year.

The final reason for the increased number of home sales is the availability of cheap, bank-owned developed lots. As I mentioned back in November, builders are beginning to snatch these up quickly and the lack of new construction for the past 18 months, especially in the lower price ranges, have resulted in many buyers grabbing some of these new homes. Sales of developed lots increased 10% in 2009 over 2008. Right now, as of this posting, there are nearly as many lots under contract as there were sold in all of 2009. Expect to hear the sound of hammers and saws this year in Forsyth as builders take advantage of prices and pent-up buyer demand for new construction at reasonable prices.

Other Market Stats

Another important trend is the continued decline in the percentage of foreclosed homes. As you can see in the graph below:

Additionally, it’s good to report that the inventory of homes for sale Forsyth County is at 11.4 months for resales, down 30% from last year, and 7.5 months for new construction, down 54% from 2008. As things continue to improve you may want to know what the effects are on your home or community. Contact us and we’ll break down the statistics for you.