The first time home buyer tax credit and repeat – buyer tax credit served to stimulate the real estate market during an economic lull, and that they did; but many experts, surprisingly, projected a continued increase in home sales following the expiration of the credit application deadline.
They were right – at least in Charlotte. Last month, homes sales in Charlotte were up by 32.7 percent from May 2009. Since December, Charlotte has witnessed six consecutive months of home sales exceeding those of the year past, according to the Charlotte Business Journal and Lyn Kessie, 2010 Carolina Multiple Listing Services, Inc. (CMLS) president.
The tax credits also helped shift local sales statistics. Sales stemming from the tax credits were dominated by homes on the lower end of the market, according to the Charlotte Business Journal. For this reason, some people offer that existing–home sales will continue to rise after the tax credit period ends, while luxury and new–home sales could decline or remain stagnant for a short time more.
While home sales in Charlotte rose, mortgage rates continued to fall. For 30 and 15–year fixed mortgages, qualified home buyers can find rates as low as 4 percent. Some FHA rates are as low at 3.875 percent.
What does this mean for home seekers? It’s still a great time to house hunt in Charlotte. Many homes are still on the market for reduced prices due to the recent real estate slump, and interest rates for home loans are at an unprecedented low. Plus, with home sales increasing, the real estate pulse of the city is picking up making Charlotte an energetic and informed place to look for new property.
