Home sales in West rise 5 percent
Tax credit spurring buyers
LOS ANGELES – Home sales surged in the Western region of the country last month as many first-time homebuyers rushed to complete their deals before a temporary tax credit expires next month, according to two reports released Friday.
Sales in the 13-state region rose 5 percent from September a year ago, according to the National Association of Realtors. Foreclosures and other financially distressed homes continued to dominate transactions in some parts of California, Arizona and Nevada. That dragged the median price down 15 percent to $219,000.
Nationally, sales posted an 8 percent annual increase in September, without adjusting for seasonal factors. The median price fell about 9 percent to $174,900.
Many buyers zeroed in on those bargain-priced properties with an eye toward reaping a federal tax credit of up to $8,000 for first-time homebuyers. To qualify, transactions must be complete by Nov. 30.
As Congress debates whether to extend the credit, sales will likely slow in coming weeks once buyers can no longer take advantage of the incentive, said Sung Won Sohn, an economics professor at California State University, Channel Islands.
“I expect December home sales to be falling off quite a bit,” Sohn said.
An extension of the tax incentive would likely continue to help spur sales of homes in the lower-end of the market.