The number of U.S. homebuyers who agreed to buy a previously occupied home took the largest monthly jump in nearly eight years, which is good news nationally and locally here in Las Vegas! We’ve been saying our local market has hit bottom for months and we believe this news underscores our assessments.
The National Association of Realtors said Tuesday its seasonally adjusted index of sales contracts signed in April surged 6.7 percent to 90.3, far exceeding analysts’ forecasts. This increase was the biggest monthly jump since October 2001, when pending sales rose 9.2 percent years in April, which is reflected also in the Las Vegas Real Estate Market.
First Time Homebuyers Moving into Market
“Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market,” said Lawrence Yun, NAR’s chief economist in a prepared statement. Since first-time buyers must finalize their purchase by Nov. 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers as well.”
The tax credit allows many homebuyers who have not owned a home in the past three years to claim up to an $8,000 refund on their taxes. We are seeing increased activity here in the Las Vegas Real Estate market from homebuyers who meet this criteria, with a great deal of activity in the $150-300K range.
Las Vegas Foreclosures& Government Bailout
We are still not clear on the impact the Federal Government’s $50 Billion rescue plan that is focused on assisting homeowners who may face foreclosure, by modifying loans in bulk. Analysts have mixed assessments of this program and the jury is still out in terms of its effectiveness. We believe it may help to continue to drive our market and continued Las Vegas Real Estate Rebounding.
