For the second straight month, Triangle home sales rose sharply compared with the same period last year as many first-time homebuyers rushed to take advantage of a tax credit they thought would be expiring.
There were 1,744 existing homes sold during November in Durham, Johnston, Orange and Wake counties, Triangle Multiple Listing Services data show. That's up 71 percent from November 2008 and down just 1 percent from November 2007.
The first-time buyer tax credit was set to expire Dec. 1 until the government agreed last month to extend it into next year. The tax credit has boosted sales of homes priced at less than $300,000 and reduced overall supply.
The Triangle had a seven-month supply of homes on the market in November, down from a 13-month supply in the same month a year ago. The average days a house remained on the market also declined from 96 days to 91 days.
While many buyers rushed to close on homes, other would-be buyers appeared to take a break from looking. The number of showings declined 5 percent last month compared with the previous year and were the lowest levels seen in November since 2003.
The number of pending sales was also down - 34 percent from October and 4 percent from the same month a year ago.
Stacey Anfindsen, a Cary appraiser who analyzes MLS data for Triangle real estate agents, said the large fluctuations in year-over-year sales will likely end in 2010. That's because sales data will no longer be compared to last fall when the market collapsed.
The first-time tax credit allows buyers to reduce their federal income taxes by 10 percent of the price of a home, up to a maximum of $8,000. The credit has also been expanded to include a tax credit of up to $6,500 for repeat buyers who have lived in their houses at least five years.
The new deadline for both tax credits is April 30 to put a home under contract and June 30 to close.
The average sales price of the November closings was $225,900, down 2 percent from a year ago. The softest part of the Triangle housing market continues to be homes priced at more than $400,000.
Jill Flink, a real estate agent with Prudential York Simpson Underwood, said she expects activity to pick up some early next year. But she said the housing market, like so many other sectors, is dependent on improving employment.
"There's still a lot of people who keep getting laid off, and everybody's worried about their job right now," she said.
