After several months of being buoyed by government tax credits, the Triangle housing market slumped badly in July as many buyers appeared to stop looking.
There were 1,366 homes sold during July in Durham, Johnston, Orange and Wake counties, down 33 percent from the same month a year ago, Triangle Multiple Listing Services data show.
Pending sales slumped 32 percent, and showings were down 23 percent. The market also saw a rise in the number of existing homes on the market. Listings in July were 20 percent higher than the same period last year and are now at their highest level in four years.
One of the few bright spots was the average sales price in July, which was $252,174, or 6 percent higher than last year.
Although most real estate professionals expected the July numbers to be down, they were still sobering.
"It's what we were hoping we wouldn't see after those tax credits expired," said Ross Rhudy, general manager of Real Living Pittman Properties in Raleigh. "I think we'll go up from here, but it's going to be a very, very slow recovery."
The decline in sales was further proof that the tax credits took sales that would have occurred later in the year and moved them forward. Rhudy said it could be the first quarter of next year before the market recalibrates to life without incentives.
In addition to the expiring tax credits, the housing market continues to be weighed down by a lack of consumer confidence and high unemployment.
The tax credits offered buyers a financial safety net, said Stacey Anfindsen, a Cary appraiser who analyzes MLS data for the Triangle. Without it, the argument for buying a home became a lot less compelling.
"The economy as it is, is not inspiring confidence in people to go for the huge ticket items," Anfindsen said. "This is still kind of unchartered territory. Until the private sector starts creating jobs instead of hoarding cash, you're going to have people out there going, 'This is kind of where I was two years ago.' "
