October home sales in Triangle show market continues to stabilize

Home sales in the Triangle jumped 26 percent in October over the same period last year, a sign that the housing market appears to have regained its footing after tanking this time last year.
There were 1,687 existing homes sold during October in Durham, Johnston, Orange and Wake counties, Triangle Multiple Listing Services data show. The number of home showings was up 12 percent in October compared with the same period last year, while the number of sales pending increased 27 percent.
“We’ve bounced up off of a bottom, and I think that’s a good sign,” said Stacey Anfindsen, a Cary appraiser who analyzes MLS data for Triangle real estate agents.
October was the second straight month that the Triangle had shown a year-over-year increase after not recording one since 2007.
But Anfindsen warned that the spike in sales and pending sales should not be viewed as a sign that the Triangle housing market is taking off again.
The market nose dived during the third quarter of last year, meaning the latest October numbers are being compared to one of the worst period's in memory.
Anfindsen also noted that the latest October numbers got a boost from the first-time homebuyer tax credit, which was set to expire Dec. 1 until the government agreed to extend it into next year.
“It looks like the market’s on fire,” he said. “Curb your enthusiasm.”
The tax credit, which allows first-time buyers to reduce their federal income taxes by 10 percent of the price of a home, up to a maximum of $8,000, has been a boon to homes priced under $300,000.
All housing segments under $300,000 showed an increase in sales in October compared to the same month last year.
Based on the October pending sales numbers, Anfindsen predicts that the market will record higher year-over-year closings in December and January.
Congress voted earlier this month to extend the first-time buyer tax credit and expand it to repeat buyers. The new deadline for both tax credits is April 30 to put a home under contract and June 30 to close.
The repeat buyer tax credit is worth up to $6,500 for buyers who have lived in their houses at least five years.