Even though the first-time homebuyer tax credit has expired, in a way, it is still driving an increase in housing sales.
In May, statewide housing sales increased by 5 percent over April numbers and by 13 percent over May 2009 statistics. In the county, housing sale numbers increased by 19.7 percent in May compared to April and by 14.1 percent when compared to May 2009 information, which was provided by the New York State Association of Realtors.
The government offered an $8,000 credit for first-time buyers. Current homeowners who bought and moved into another property could have received up to $6,500. The credit expired April 30. That's when a new homebuyer would have had to sign a contract to qualify.
However, homebuyers have until June 30 to finalize the closing of the sale, which is why housing sales are still increasing in the state.
''New York state's housing market continues to show growth as we enter the typically active summer season,'' said Duncan R. MacKenzie, NYSAR chief executive officer. ''The federal homebuyer tax credit continues to drive the monthly sales total as buyers close on homes placed under contract before the April deadline. We expect the June sales figure to be strong ... as buyers taking advantage of the homebuyer tax credit must close before the final deadline of June 30.''
In fact, Jan Murray, county Board of Realtors executive officer, said there are a lot of properties in New York and nationally that are still pending final closing. So many that Congress is working to extend the deadline to Sept. 30.
''There are still quite a few. In New York, 9,000 properties are still pending,'' she said. ''Nationally, 75,000 transactions could be impacted.''
COMMERCE DEPARTMENT REPORTS DIFFERENT STORY
Even with the good news of home sales increasing from information provided by the state Association of Realtors, the Commerce Department reported earlier in June that housing sales dropped 33 percent nationally in May to the lowest level on record.
New-home sales in May fell from April to a seasonally adjusted annual sales pace of 300,000. That was the slowest sales pace on records dating back to 1963 and it's the largest monthly drop on record. Sales have now sunk 78 percent from their peak in July 2005.
New-home sales fell nationwide from April's levels. They dropped 53 percent from a month earlier in the West and 33 percent in the Northeast. Sales in the South dropped 25 percent. The Midwest posted a 24 percent decline.