March Selling Madness!

After the passing of the new federal tax credit of $8000 for first time buyers, we are seeing a crazy frenzy of buying in Phillips Ranch and neighboring cities. Buyers with large cash down payment of $100,000 to $250,000 saved in their CD accounts are coming out to make purchases now.

Above is a chart showing the number of houses sold in Phillips Ranch from 2006 to 2009. In March 2009, 15 properties were sold and 17 properties went into escrow.

March sales volume is 3 times more than last March in 2008 and is highest since 2006. We are also seeing rapidly market price increase of 10% to 20% since December 2008.

Since the interest rate is still below 5% for 30 year fix rate loan, this may be the last opportunity for buyers to capture excellent deal with low interest rate.