Triangle home sales drop 27 percent in 3rd quarter

Triangle home sales dropped 27 percent in the third quarter compared to the same period last year as the market continued to feel the effects of a stalled economic recovery and the absence of federal homebuyer tax credits.

There were 3,834 homes sold in Wake, Durham, Orange and Johnston counties during the three months that ended Sept. 30, according to Triangle Multiple Listing Services data.

Showings were off 27 percent and pending sales were down 32 percent. The supply of houses on the market has also jumped from seven months to 11 months over the past year.

Supply is determined by the time it would take to get through the existing inventory at the current pace of sales.

The dismal third quarter numbers are a sign that the slowdown that occurred when the tax credits went away earlier this year has continued into the fall.

The numbers also reflect the fact that last year during the third quarter many buyers were rushing to take advantage of a first-time homebuyer tax credit that was originally set to expire on Dec. 1.

The government later agreed to extend it to April 30.