As tax credit – and snow – melted away, home buying warmed up
The number of contracts to buy a home spiked 133 percent last month in Greater Des Moines, the Des Moines Area Association of Realtors said today.
Joanne Mangold, the association’s president, said the increase was due to the expiration of a federal tax credit and people shaking off the winter blahs.
Realtors wrote 1,333 contracts in April and closed on 836 sales. Both numbers were an increase from month-ago and year-ago figures.
The number of homes on the market dropped to 5,514 in April from 5,618 in March and 5,648 in April 2009.
“It looks like the month didn’t disappoint us,” Mangold said in a news release. “As predicted, there were many more sales than the prior year and a good increase over March. Interest rates remain low, and there’s a good inventory of available homes, even with the increased activity.
“Besides the stimulus money, buyers are telling us they are tired of winter and ready to get out and trust the market again.”
Homeowners must have been under contract to purchase a home by April 30 to qualify for the Homebuyers Tax Credit.
The number of contracts closed increased to 836 in April from 596 in March.
The average sales price rose 11 percent from the previous month to $157,024 during April. Homes were on the market for an average of 97 days, down five days from March.
“As long as interest rates hold steady, I don’t foresee anything but a normal market going forward into the summer months,” Mangold said.