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| 10/24/2009 12:02:00 AM | Email this article • Print this article | September housing sales improve in region
Heather Nellis
Recorder News Staff
Based on statistics released Friday by the Greater Capital Association of Realtors, the real estate market of the Capital Region, including Montgomery County, has improved for the fourth consecutive month, but officials say they're not out of the dog house yet.
The report is based on contracts of sale; data collected by the Capital Region Multiple Listing Service. Contracts of sale, also known as pending sales, represent the most current market activity.
For the region, total residential sales, both resale and new construction, has increased 9 percent, but residential listings, closed sales, and average sale amounts have all decreased in comparison to September 2008.
On the bright side, Montgomery County saw increases across the board, including the upward of 30 percent increases in average sale dollar amounts and median sale dollar amounts. The data did show, however, a 12 percent decrease in the number of listings.
GCAR President Sandra Nardoci said the increased activity is encouraging, but the association would also like to see a consistent increase in the average and median price of homes sold.
"When that barometer turns positive for several months in a row, we might be able to state with confidence that the housing market is on its way to becoming robust and exciting once again," she said.
Associate broker Brent Phetteplace of Judith Ann Realty in Tribes Hill said the peak real estate season is typically from May to July, but it's been "a late year as far as a spike in activity."
"People held back, then came in hot and hot and heavy. Though the numbers didn't follow the typical trends, we've had a nice gold rush back into our normal business cycle," he said.
Robert Purtell, broker and owner of Century 21 Purtell Realty in Amsterdam, said the trends in the county are reflective of his company's current sales and closings. He said while it's hard to tell exactly why the numbers are increasing, the $8,000 tax credit for first-time buyers is a motivating factor for people questioning the market.
"I'm still cautiously optimistic that the market is improving and stabilizing, but I'm not totally confident that we're out of the woods yet."
GCAR Chief Executive Director James Ader said the end of the tax credit, though there is talk of extending the program beyond the Nov. 30 deadline, might have an immediate negative impact on the market.
"Buyers who did not meet the deadline might become discouraged and pull out of the market for the time being," he said.
Purtell disagrees.
"Sales are typically driven by need, not incentive. Although the incentives might have been the impetus for some people to purchase, the need for housing far exceeds the incentive," he said.
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Contact Heather Nellis at heather.nellis@recordernews.com.
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