New York State Home Sales Rise 20% Year-over-year, Buyers Take Advantage of Federal Tax Credit

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According to preliminary single-family sales data accumulated by the New York State Association of Realtor (NYSAR), the New York state housing market continued to improve as April 2010 sales jumped nearly 20 percent compared to April 2009. The statewide median sales price also rose by more than 8 percent compared to April 2009.

"The April data indicate two positive sales trends for the Empire State's housing market," said Duncan R. MacKenzie, NYSAR chief executive officer, noting that sales have increased from year-ago totals for four consecutive months, and from prior-month sales for the past two months. "The federal tax credit, along with low mortgage rates and a good selection of available inventory, continued to drive market activity in April." He added that while the statewide median sales price has fluctuated on a month-to-month basis, it has consistently shown growth compared to the year-ago medians.

"We expect that sales totals will be strong through June as buyers close their purchases prior to the final federal homebuyer tax credit deadline," said MacKenzie. "All buyers under contract prior to the April 30 deadline must close before June 30 to remain eligible for the tax credit."

MacKenzie noted that the federal homebuyer tax credit deadline is extended for members of the armed services and certain other federal employees, who served outside of the United States for at least 90 days after December 31, 2008 and through May 1, 2010. These service members have a contract deadline of April 30, 2011 and a closing deadline of June 20, 2011.

New York Realtors sold 6,145 existing single-family homes in New York State during April 2010, a 19.7 percent increase compared to the April 2009 sales total of 5,133. April sales also increased from March 2010 when 5,461 homes were sold.

The April 2010 median sales price in New York State of $197,000 represents an increase of 8.2 percent compared to the April 2009 median of $182,000, but fell off by 3.4 percent from the March 2010 median of $204,000.

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