Deryck Wilson

Realtors' index rises 6.4% in August for 7th straight gain as tax credit deadline boosts activity.

GREENVILLE, NC -- Homebuyers signed more sales contracts in August than in any month this year, boosted by the looming expiration of a homebuyers' tax credit, according to an industry report released Thursday.

The August Pending Home Sales Index from the National Association of Realtors (NAR) surged 6.4%, the seventh straight month-over-month improvement in the indicator. The increase far exceeded economists' expectations -- a panel of analysts surveyed by Briefing.com had forecast a 1% rise.

Pending home sales rose 3.2% in July.

Pending sales are considered a forward indicator of housing market health since contract signings precede actual closings, which typically occur two to three months later. August contract signings show up in October and November NAR statistics as existing home sales.

Housing markets have gained some ground recently as a tax credit for first-time homebuyers -- which is scheduled to expire Nov. 30 -- stimulated sales of starter, and other, homes.

"No doubt many first-time buyers are rushing to beat the deadline for the $8,000 tax credit, which expires at the end of next month," said Deryck Wilson, a local RE/MAX associate.

One problem in extrapolating future closings from contract signings, however, is that there are continuing problems obtaining mortgages that may scuttle many deals, according to Yun.

"The rise in pending home sales shows buyers are returning to the market and signing contracts, but deals are not necessarily closing because of long delays related to short sales, and issues regarding complex new appraisal rules," he said.

Those issues also could also lead to some double counting of previous pending sales as buyers whose earlier deals fell through may return to the market and sign new contracts.

Still, the oversized gain in pending sales will surely translate into some increase in closings, and the report added to several other positive recent indicators that housing markets are at least stabilizing, if not in full-blown recovery.

Not all economic and housing indicators have been pointing up. Initial jobless claims climbed this week, according to a Labor Department report, after three weeks of declines.

Foreclosure filings are still well above normal and they threaten to go far higher as the terms of many toxic mortgages, such as interest-only loans and option ARMS, reset over the next six to 12 months and send the monthly mortgage payments of homeowners soaring.

Another housing market question mark is the status of the tax credit for first-time homebuyers, with the industry fearing that home sales could drop sharply if it's allowed to expire.

There are, however, several efforts in Congress to extend the credit and even to expand it to all homebuyers, not just first-timers. That could turbo-charge home sales if it goes through.

3 TRADE UP MISTAKES TO AVOID

Unlike the experience of buying a first home, when you're looking to move up, and already own a home, there are certain factors that can complicate the situation. It's very important for you to consider these issues before you list your home for sale.

• Rose Coloured Glasses
  Most of us dream of improving our lifestyle and moving to a larger home. The prolem is usually the difference between our hearts and our bank accounts. You drive by a home and fall in love with it, only to find out it's either pending or they're asking more than you are willing to pay. Most househunters get caught in this hit or miss stratesgy of househunting when there's a much easier way of going about the process. Find out if your agent offers a "Buyer Profile System" or "Househunting Service". Deryck Wilson, a RE/MAX associate, offers a VIP Buyer Program which takes the guesswork away and helps put you in the home of your dreams. This type of program will cross reference your criteria with ALL available homes on the market and supply you with printed and/or e-mail infornation on an on-going basis.

• Failing to Make Necessary Improvement
  If you want to get the best price for the home you're selling, there will certainly be things you can do to enhance it in a prospective buyer's eyes. These fix-ups aren't always expensive either. But even if you do have to make a minor investment, it will often come back to you ten-fold in the price you are able to get when you sell.

• Not Selling First
  You should plan to sell before you buy. This way, you don't find yourself feeling disadvantaged at the negotiating table, feeling pressured to accept an offer that is below market value only because you have a deadline to meet. If you already have sold your home, you can buy your next one with no strings attached. If you do get a tempting offer on your home but have not gotten significant headway into finding your next home, you might want to put a contingent clause in the contract which gives you a reasonable time frame to find a home to buy. Selling a home on your own is possible, but it's advisable to use a REALTOR and get the home sold for the most amount of money in the quickest time frame. Realtors know their markets!

Where you can find a pumpkin patch, corn maze, safe trick-or-treating, hayrides and other Fall and Halloween fun near you! Many are still open in November!

Pitt County NC- Pumpkin sightings:

• Brileys Corn Maze - corn maze, Hayrides, Pick your own pumpkins, Already picked pumpkins, Petting Barn, Hay Maze. 2312 Ram Horn Road, Greenville, NC 27834. Phone: (252) 413-6155. Phone: (252) 757-3969. Directions: Located Hwy 264 East, 3 miles from Greenville Marine, 10 miles from Washington, NC. Produce Stand located on corner of 14th Street & Greenville Blvd. across from Trade Mart #1.Open: April 20-Nov 15; Call for hours.. Corn Maze, Hayrides, Picnic facilities & Petting Barn.

• Strawberries on 903 - Pumpkins
  3709 NC 903 S, Winterville, NC 28590. Phone: (252) 321-3204. Phone: 2527143848. Email: mlskinner@mail.com. Directions: Located 4 miles south of Winterville, on Hwy 903 South. Open: Sunday 1 am-6 pm; Monday-Saturday 7:30 am-6 pm; April thru July 1. Crop availability: Strawberries, Cabbage, Irish Potatoes, Onions - April-June Garden Peas - May Asparagus - April-May Cucumbers - May-June Sweet Corn - June-July Pumpkins - September-November. Farm tours for school groups and picnic area.

Other Usual Locations of Pumkin Patches:
Corner of Firetower Road & Arlington Blvd
Corner of Firetower Road and Old Tar Road

FREE PUMPKINS with Every Home Listed/Sold in October!!

ELMHURST-ENGLEWOOD SUBDIVISION IN GREENVILLE, NC

Community Website: www.Elmhurst-Englewood.com

• Tree Lined Streets
• Sidewalks
• Family Neighborhood
• Close to ECU, & Dowdy Ficklen Stadium
• Homes built between 1950-1975
• Square Footage 1300-3000

www.GreenvilleNCRealEstateBlog.com

The North Carolina Seafood Festival - October 2-4, 2009!