Triangle home sales surge in May but summer is uncertain

Home sales in the Triangle jumped again in May as buyers rushed to take advantage of the government’s tax credits for first-time and repeat buyers.

But the expiration of the tax credits, which required eligible buyers to put a home under contract by April 30 and close by June 30, appeared to cause many people to stop looking.

The number of showings in May was down 30 percent from the same month a year earlier, and pending sales were off 5 percent.

Those numbers will only increase anxiety over how the market will react once the tax credits are no longer around to provide a boost.

There were 2,083 homes sold during May in Durham, Johnston, Orange and Wake counties, up 26 percent from the same month a year ago, Triangle Multiple Listing Services data show.

The increase was less than the 33 percent year-over-year increase recorded in April.

Showings also declined last November when it was assumed the government tax credits would expire, although the dip was only 5 percent.

The tax credits allowed 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. Repeat buyers could get a tax credit of up to $6,500 if they had lived in their houses at least five years.