Driven By First-Timers, Home Sales Show Dramatic Increase

New data from the National Association of Realtors found that in the month of September, which is the latest data available, existing home sales increased 9.2% from September 2008. While this is great news for the housing market as this is the highest increase we've seen in two years, the increase is likely due to the fact that the $8,000 tax credit for first-time home buyers is expiring November 30 and these buyers are racing to close on their home sale. In fact, early estimates are that first-timers have comprised 45% of all home sales thus far this year.

Unless the tax credit is extended, we suspect that October and November figures will also show increases and that we'll see a noticeable drop in December.

Home sellers, especially with homes geared for first-timers, should keep close attention to housing news regarding the tax credit. We'll keep you informed here as well, but we've found that the most successful "by owner" home sellers are aware of the latest news affecting the housing and mortgage industries. Not only because buyers are more confident working with such knowledgeable sellers, but because sellers who are aware of the latest trends are more likely to market and accurately price their home to attract qualified buyers.