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April is Not the Cruelest Month For Real Estate

Just like it is for the weather, April is something of a transitional month for real estate in Southern California. This seems to be the case this year we are facing the expiration of the federal tax credit of up to $8000 for first time home buyers who enter into contract by April 30. (Now that California has joined the game by throwing in an additional tax credit, for a short while at least, quick acting first time buyers might be able to get up to $18,000 in tax credit.)

The March statistics for the San Fernando Valley seem to indicate that these programs may be increasing sales.

If we look at the charts below, we see a brisk upward trend since January. In January and February, the properties stayed longer on the market, while the sale activity cooled from December 09. However, March 2010 shows an increased activity with sales jumping up, more properties going into escrow and prices that are heading up. Despite the pending lapse in the federal tax credit, it appears likely that this trend will continue for the coming months, especially since interest rates are still comparatively low, prices, though edging upwards are still attractive, and California (and various municipalities) are helping out with various programs providing down payment assistance and other benefits to help buyers to access properties. Please feel free to contact me as I know about a bunch of special buyer assistance programs.