Sales of new U.S. homes showed a surge of 27 percent in March, this after February's record low and exceeding expectations as government incentives boosted sales. This was the strongest month since last July and the biggest monthly increase in 47 years. The report reflects signed contracts rather than closed sales and leads us to speculate as to this seemingly positive outcome.
The most likely explanation is the rush by many consumers who are trying to qualify for federal tax credits that will expire at the end of April. The government is offering an $8,000 credit for first-time buyers and $6,500 for current homeowners who buy and move into another property. But I do believe there are other factors driving this recent surge:
- First, investors are rapidly snapping up great foreclosure and short sale deals
- Next, the most significant growth, 44%, was in the South. Not surprising, when winter arrives, Northerners head south in droves and this was a particularly harsh winter.
Florida had far more than its usual share of visitors from Canada, New York, Michegan, Maryland, Pennsylvania and other icy places further north from here. When the visitors arrive, the temptation to avoid more icy winters up north is so strong that thousand decide to purchase a second home, becoming "snowbirds" is preferable to braving another winter of below zero temperatures.
We're moving out of the "season" now and the snowbirds are heading back home, the market quitens down and the Florida roads empty considerable. Houses linger on the market for the sumer months, Sellers start feeling desperate and lower their prices. So, why wait till the next snowstorm to Buy a home in Florida. Take it from me, your winters will always be miserably cold. Buy in the summer to avoid the rush and negotiate the best prices possible.
I'll give you professional service and valuable advice.
Call me:
561-866-9372
Tali@floridianinternational.com
http://www.floridianinternational.com/
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