Family Life

11.11.09 | FL News Team

The first-time homebuyer tax benefit is being credited for a rise in existing home sales nationwide, while home prices continue to decline. Figures from the National Association of Realtors show total existing home sales increased more than eleven percent in the third quarter of the year, compared to the second quarter of the year. Third-quarter sales were almost six percent higher than the same period in 2008. NAR chief economist Lawrence Yun remarked, quote, "we can't underestimate just how powerful a catalyst the first-time homebuyer credit has been for the housing sector." He said it has prompted many first-time purchasers to "get off the fence."

Meanwhile, prices are continuing to decline. NAR numbers reveal 123 out of 153 metropolitan areas reported lower median prices in the third quarter of 2009, compared to the third quarter of 2008. The existing median single-family home price for the third quarter was almost 178-thousand dollars. That's more than eleven percent lower than the third quarter of 2008. Yun attributed the price decline to the large number of foreclosed properties on the market and to short sales, where a lender accepts a sales price less than what is owed on the property.