From Portland Business Journal, by Wendy Culverwell
Portland home sales soared in April as buyers rushed to take advantage of an expiring federal tax credit, according to new data from the Regional Multiple Listing Service.
The credit was worth up to $8,000 for homes under contract by April 30. The deadline helped propel Portland metro sales to a 49.1 percent increase over the same month in 2009. Pending sales rose 60.8 percent and new listings rose 23.8 percent as sellers sought to take advantage of time-sensitive buyers.
There were 1,941 closed sales, 2,991 pending sales and 4,713 new listings in April. In a sign that first-time home buyers dominated the market, the average sale price in April decreased 3.1 percent from a year ago, to $282,100. The median sale price fell 4 percent to $240,000.
Year to date, closed sales rose 41.4 percent to 5,900, pending sales rose 46.3 percent to 8,476 pending sales and new listings rose 15.4 percent to 17,918.
At April’s pace, the current inventory of for-sale homes would last for about 7.3 months, giving buyers a slight advantage. However, because the tax credit, worth up to $8,000 for first-time buyers and $6,500 for returning buyers, is no longer available, sales will likely drop in coming months.
Looking ahead, May closings will likely be up thanks to contracts written by the April 30 federal deadline to qualify for the tax credit. However, pending sales will begin to drop to normal market levels starting this month but could be offset by a seasonal uptick in residential sales activity.
