Explore Properties at Southern California: Expect to See Home Sales Surge Again during Early Spring 2010

It's probably OK that we have experienced decline of pending homes sales during November last year, especially because the homebuyer tax credit had the prior surge toward an October 30, 2009, deadline.

"It will be at least early spring before we see notable gains in sales activity as homebuyers respond to the recently extended and expanded tax credit," said Lawrence Yun, chief economist for National Association of REALTORS. "The fact that pending home sales are comfortably above year-ago levels shows the market has gained sufficient momentum on its own. We expect another surge in the spring as more homebuyers take advantage of affordable housing conditions before the tax credit expires."

The US homebuyer tax credit was originally set to expire at the end of November, and that was extended Congress and law. Buyers now have until April 30, 2010, to sign a contract on a home, and until June 30 to close the transaction ... in order to receive a tax credit of up to $8,000 for first-time homebuyers and $6,500 for current homeowners.

National Assoc. of REALTORs project an additional 900,000 first-time buyers and 1.5 million repeat buyers will qualify for the extended tax credit this time.

Mortgage Interest rates will probably increase in 2010. But tax credit extension and job growth is expected to encourage homebuying.

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Harrison K. Long, Explore Group, Coldwell Banker Previews, Irvine, CA. Irvine Realtor. CA DRE #01410855. ExploreProperties@gmail.com. Tel. 949-854-7747.